Whoaa, Hold on There, Padnuh Paul-
<<I have a bad feeling about this market so I've opted out of it and no longer own any stocks.>>
While I certainly agree the market looks a bit pricey (not grossly, IMO, but a little). Still, equities are intimately linked to the greatest wealth-producing engine known to Man (the species, not the sex). Lotsa smart folks were saying the Dow looked pricey 2000 points ago. My best friend is pretty smart, but he's sat on his duff the entire bull market of the 90's, thinking we were in a tulip mania. Market timing is not a game very many people should play with the bulk of their financial assets.
May I suggest with your liquidity that you start dollar cost averaging? Find stocks, or funds you like for the long haul, and then put a set amount of money at regular intervals (say monthly or quarterly) into those vehicles. You'll buy fewer shares when in the market is high, and more when it sells off. You will not be locked out of the greatest wealth producing machine in history and you will not suffer unduly if and when the market does correct its current excesses. Moreover, you'll participate in the recovery.
FWIW I'm rather cautious about the market today also- but I felt that way when the DOW crossed 4000. Sure am glad I didn't bail out then.
Larry
P.S. Thanks for the link- I've never read Extraordinary Popular Delusions, but I'll have a look at it now. |
