To: Johnny Canuck who wrote (46496 ) 1/19/2011 3:37:13 AM From: Johnny Canuck Read Replies (1) | Respond to of 68200 Investors' return to US stocks could be too late "You simply have got to put aside the emotion and believe in what you are taught, to buy low and sell high," says Carol Clemens, a 64-year-old retiree from Edmond, Okla. She scored big when she snapped up shares of Ford for around $2 when it appeared U.S. automakers might go under a couple of years ago. The stock now trades above $18, thanks to smart moves by Ford's management and a strengthening economy. Clemens' portfolio is about two-thirds stocks and one-third bonds, and she's recently been trimming her stake in bonds. "If you put money into bonds, there is a nice cushion when the stock market goes down," Clemens says. "But I'm retired, and we're looking for an income stream. We're not getting it from bonds," she says, calling current yields "abysmal." Belief that the economic recovery is on track has recently driven up long-term interest rates from record lows. This has led investors to pull out of low-yielding Treasurys. Rising rates also are making it costlier for state and local governments to borrow. Fear of further rate increases also is causing prices for many previously issued bonds to drop. That's because investors will be able to buy newly issued bonds paying higher interest.finance.yahoo.com [Johnny: A lot of sentiment indicators like the BPNYSE and others are at extremes. The quote in this article indicates we are getting close to a near term top. Too many people are looking for it to occur soon, but if the sentiment in the quote is any indication the "last fool" may have bought into the market. I don't expect a melt down just a correct to get rid of the excesses. The need to re-build nest eggs are going to keep babyboomers coming back to try their luck in the stock market casino. The old poker quote is if you can't identify the sucker at the table it is probably you holds true.]