Act Like an Investor: Do Nothing
Last night I spent some time exploring the Twitterverse. As always, I exchanged barbs and quips with fellow Real Money contributors Brian Sozzi, Bob Byrne and others over the course of the evening. I also noticed a very strong trend: Market participants are either hard core bulls or hard core bears right now. Everyone seems to have a high degree of conviction about what the market is going to do over the next few months and is willing to bet on it. They also seem to think the rest of us should follow their path with high degrees of conviction and leverage.
This type of thinking is insane right now. There are just too many variables to merit taking a strong stance on market direction. To be fair, the negatives outweigh the positives at this moment. The fiscal cliff is looming. Europe is still, as my kids like to say, a hot mess. Earnings so far have been weak and guidance is worse for many of the S&P 500 companies. QE3 has not accomplished anything more than QE2 did -- probably a lot less. We are seeing layoffs rise, especially in the retail, restaurant and banking industries. To top it all off, we have increased geopolitical risk in the Middle East with chances for a more serious conflict rising by the day....483 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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