What is the general feeling regarding profit potential during the next six months and beyond?
Personally, I see lots of negatives and few positives for the economy at the moment, and as a result am currently 85% cash and playing the other 15% very tight. Is this too paranoid? What do you think?
You're too paranoid. The economy is actually picking up a little. Not much, but it's not falling back into recession. I think Obama is likely to win in which case things continue pretty much as is. A little temporary drop in the market, maybe, but I think the market is now expecting a BO win. If Romney wins, we get a big pop, and then you should sell as he is likely to kill the economy with his quick solutions. I also think that pass-through dividend stocks - like AGNC - are "protected" by their NAV, and are safer than, say, Apple, etc.
I started selling on nov 1. Now 70% cash.
In uncertainty, the market will sell off a bit. I am going to hold cash and wait for glaring opportunities like when agnc went below 32 last month. Now it will have to dip below 30 for me to bite.
I realize that mine is not the conventional opinion. But I think that should Romney win, stocks will slide. Why? Because under a Romney administration Ben bernanke will be gone. The Fed has provided very easy money along with QE 1, 2, etc. the Fed's intent has been to force investors into more risk. And it's worked to a degree. As much as I pray that we show Barry the unemployment line, I think for stocks, the status quo is better.