Paul and Wallace, from talking to my friends, it seems like most individual investors are left out in this rally. Most people are very cautious, selling in to the rally. Yet the NASDAQ, S&P500 just broke out to a new yearly high, DJIA is also close to the high. One must ask: who is buying?
I think the smart money has and will continue to buy into the market, maybe shifting money from the bonds. If this is true, this will be a long awaited new bull market. The market will continue to move up until most average investors see it up 10-15% more while their money is sitting on the sideline getting 1% interest, or losing 3% in bonds, they will truly feel left out, the scare of missing new bull market will drive them back. I am staying fully invested, shifting money from fairly valued stocks to under cash stocks, such as ALVR to VICL last week. |
