I am not knowledgeable about investments overseas. I only know that the US economy is dependent on consumer spending, the consumer is dependent on housing appreciation to keep taking out money. Once housing stops rising, the consumer pulls back, and companies’ profits will fall, and stocks will fall. Also we have rising inflation and interest rates which are pressuring the markets.
Some believe that China will keep growing, even without the US consumer. Others believe China is dependent on exporting to us.
To be on the safe side, I sold all my equities. Perhaps you can make money in global funds. But which ones?
I am going to try Chris J’s trading system. I need $10K to open an account at a futures brokerage, and will get the orders off his website. It involves only 1-2 trades per week, which I call in to my broker in the morning. I hold it for several days, and then execute a sell. Simple enough. His method is up 60% this year, and he wins 90% of his trades. I am also trying some of the advice from the Zeal newsletter; they suggested a lead mining company in Canada. Yakamoto Forecast is recommending 100% cash position. But I will use a small amount of my money as play money in the bond futures (Chris J’s site) and commodities. Also may get Rydex Short funds, and some gold bullion after the pullback. It makes sense to hold a couple percent of assets in physical assets.
Perhaps money can be made in pawn shops, and others which prosper during recessions. Problem is: P/Es are over 25 for Proctor & Gamble and all publicly traded pawn shops. Isn’t there any good deal in the stock market these days? The whole darn thing is so overvalued right now.
I agree when equities fall we can get back in. Everything is cyclical. I was just pointing out that we are at the top now.
