The markets appear to be struggling to breakout into the final bubble phase. I know that I have been reluctant to jump on board with those who feel the markets are going to enter final bubble phase. Later in this post I will provide you with some evidence that we may just see that bubble in the future.
The rewards of being fully invested in the market have been great, to say the least. Even seniors have been drawn into the markets, with interest rates so low there have been few alternatives. The days of relatively high yielding Certificates of Deposit are well behind us.
How does one deal with this coming bubble phase, if it does in fact occur? It’s like most things in life you need to be prepared for an outcome that will affect your life.. You have to avoid letting greed take control of you. You have to be willing to move to the sidelines at some point in time and realize that you will never exit at the exact top. In fact, not all stocks are going to peak at the same time ( I will address this in my next post).
Being proactive is not always easy. You may feel that your financial adviser will keep you informed. Some financial advisers will do that, but, most won’t. I remember in 2000 I called the top of the markets in March. I was in a partnership and trying to get my partner on board was next to impossible. Our clients had enormous long term capital gains and he just couldn’t pull the trigger. Granted the markets, after a blood bath, did find a bottom and the next bull market evolved. The problem is that it took another six years to do that and once again we saw another blood bath.
Below you will find a post by Gary Savage from Smart Money Tracker. He explains his views regarding the US Dollar and the stock market, what may happen and the correlation between the two. I strongly recommend Gary, he has allowed me to post some of his subscriber articles. I hope you find it informative.