1. Sunday, February 13, 2011 - 11:46 AM
Time to get out of the market. When the herd rushes in it's a sure sign that the bull run is near an end. Even Goldman Sachs is hesitant to put even more money into this market.
2,044 posts since
Apr 6, 2010
Rep Points: 10,467
2. Sunday, February 13, 2011 - 3:21 PM
Shorebreak has that right. Rising interest rates, which are quite possible by the end of the year, will put significant downward pressure on the market, and it will very likely drop substantially. That is the routine when interest rates rise.
The market typically drops notably over the summer, and then comes back in late fall. Because interest rates quite possibly will be rising by late fall, what will probably happen this year is that the market will probably drop for summer, likely starting in April or May, but not come back at the end of the year this time around.
That means the next couple of months is a good time to get out.
Unfortunately, the only safe place to go, the banks, are quite disappointing with the interest rates they are offering now or are likely to be offering any time this year. So, money you move from stocks to the banks will pretty well just sit around and do nothing. Your only benefit will be that it doesn't lose money, like the stock market is likely to.
Unfortunately for me, I pretty much never have enough sense to follow my own advice.
325 posts since
Jan 16, 2010
Rep Points: 2,140
3. Sunday, February 13, 2011 - 4:42 PM
Me1004, you are not alone. Many of us fall into the "do as I say, not as I do" trap.
With the recent rally in the market, a lot of losing positions have been turned around. However, I still remember an old friend's advice to never let green (profit) turn to red (a loss) so I will lock in some gains soon. The only safe alternative, as you say, seems to be in low-paying accounts, where at least one does not lose money. RCAs are good alternatives, though, and thanks to Ken we have a chance at finding the best rates.
1,334 posts since
Nov 2, 2010
Rep Points: 5,787
4. Sunday, February 13, 2011 - 5:13 PM
Nobody can time the market. It may be high time to bail out the market; or it may not.
Develop a strategy that is independent of the market ups/downs; that is the prudent approach.
1,402 posts since
Jan 16, 2010
Rep Points: 6,071