Your Investing Strategy Right Now

It’s a crazy time right now in the stock market and everyone is talking about a possible correction.  There are two sides to every story and there are two sides to this one as well.  In any case, your investment strategies need to be ready for the inevitabilities of either situation.  It’s a good time to be nimble in the markets right now.  I would also question the traditional thinking behind retirement planning and stock investments.

There are two schools of investing thought.  One says that we are current experiencing a temporary dip in a otherwise long term rally and bull market.  The bears are saying that this is a correction, and it will be a huge one when all is said and done.  Both sides have their arguments, and both sides are very valid.  If you are doing online stock market trading, you can play off of the bulls and bears for profit.

The bulls are saying the recovery, albeit slow, is real and will be sustained.  Even those who don’t think the Fed’s policies will work over the long run, they don’t think they will give up on this economy.  In essence, Ben won’t let the financial markets fail and he won’t be satisfied until there is real job growth and creation in the economy.  This is a mandate from his boss.

The other side says that the government policies have failed and there is too much risk in the world for the markets to continue to rally.  They point to the very slow recovery and potential double dip in the housing market.  They also point to the serious events in Europe with various sovereign states in crisis over their debt.

Then there is the actual market and what they are saying.  Gold is shooting up again, pointing to the fact that the market actually may be nervous about what’s going on.  But on the other hand, the VIX, which is an indicator of volatility in the stock market, is relatively low given the fact that there is a lot of fear and bear talk going on.

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