or should I say bullie - one who has to participate in a BULL market? LOL
With the FED's continuation of easy money and every country is competing in printing more and more paper money in order to stimulate their economies, and with all these large equity firms who are holding large piles of cash, they have no choice but keep employing them, otherwise they would have to return the cash to their clients by the end of this year, which will mean forgoing their large service fee and larger bonuses.
That may mean we will continue to see a BULL rally, albeit slowly, and continue to see all three indexes being pushed to newer highs, exceeding that in 2007. Even many financial experts have no clue whatsoever in where this rally will go. Everybody expects to see a correction, but nobody knows when and how big a correction.
In this type of market, the only thing we can do, IMHO, is to have a very steady core portfolio which can stand any market corrections in the long term, have enough cash to day trade and cherry pick good dividend stocks when the corrections occur.
I bought a total of 3,000 shares of BKCC in the last three days at an average cost of about 10.25, just sold them earlier today at 10.45, net close to $600 in profit. That was indeed lucky and rare because lately the market had become stagnant and therefore very hard to make any money. But right now one simply cannot short the market, at least not yet.
You may want to watch HYT and HYV, both dropped today (now paid more than 8% dividend) and may become good day trades.
Hi, tulsa: Forgive me for asking, what exactly is PM, precious metals, Philip Morris or preventive measures? Now when I am typing this question, I believe you mean precious metals.
I am not so sure PM is the best answer right now, in a few years, may be, or when the FED starts raising interest rate. Again, we cannot time it right. I did buy a few shares of GGN today though. Wanted to buy some GLD but thought better of it because gold may actually tank more. Gold mining stocks are just too risky and will tank with the market. J