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.

Read the full story and get access to the Real Money Pro trading floor.

There’s no substitute for a trading floor to get great ideas, so Jim Cramer created a better one at Real Money and blogs there exclusively. We then added legendary hedge fund manager, Doug Kass, with his exclusive Daily Diary and best investing ideas. Staffed with more than 4 dozen investing pros, money managers, journalists and analysts, Real Money Pro gives you a flood of opinions, analysis and actionable trading advice found nowhere else, and allows you to interact directly with each expert.

Already a Subscriber? Please login.

Except as otherwise indicated, quotes are delayed. Quotes delayed at least 20 minutes for all exchanges. Market Data provided by Interactive Data. Company fundamental data provided by Morningstar. Earnings and ratings provided by Zacks. Mutual fund data provided by Valueline. ETF data provided by Lipper. Powered and implemented by Interactive Data Managed Solutions.

TheStreet Ratings updates stock ratings daily. However, if no rating change occurs, the data on this page does not update. The data does update after 90 days if no rating change occurs within that time period.

IDC calculates the Market Cap for the basic symbol to include common shares only. Year-to-date mutual fund returns are calculated on a monthly basis by Value Line and posted mid-month.