The Key to Making Money in the Market
After Monday's selloff, I found all the chatter on social media about the coming end of days amusing. With the market barely 2% off the recent highs, there was talk of a huge pullback in stocks and preparations for a potential crash-type move. It was, after all, the worst day in the market in three whole months. While people were tweeting and blogging about how hard they were looking at charts and keeping track of Asian indices, I was enjoying a nice glass of wine and a book and ignoring the overnight stock markets. I suspect some felt insulted that I disparaged those who were charting stocks at 11 p.m. on a Monday night.
But I am not naïve. Problems in Italy could certainly cause trouble for global stock markets. While the actual sequestration cuts in the U.S. are not that bad ($85 billion is about a week of spending in the $6 trillion budget and the equivalent of what is spent monthly to buy mortgage bonds), the lack of political will to prevent it is troubling. I wrote on Monday about how the economy is still in a state of "better but not good." Consumers are scared, job growth is anemic and a lot can go wrong in the stock market....591 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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