Wednesday, May 15, 2013

Is It Time To Sell (Your Stocks)?


I don't know who originated the saying, but whenever I think of Warren Buffett I think of "Be fearful when others are greedy and greedy when others are fearful." If ever there was an overabundance of greed, it's now. While the Dow is at consistent all time highs each day (today it closed at 15,215) and the Fed is touting stocks as "cheap", I can't stop thinking a correction is due. And that correction is likely to be big. The Fed did add a large disclaimer but I'm serious when I say while there are great signs the recovery is starting to look less anemic, the unemployment rate and addition of less than 200,000 new jobs a month still leads me to believe that we're on the wrong track.

The Democrats are in a defensive stance so no new jobs legislation is on the burner and with Obama looking weaker than usual nothing is likely to happen through the next election. In fact with the poor way the administration is handling BengaziGate and IRSgate things are likely to get worse before they get better. Could the Republicans actually get more house seats in the fall? Either way, nothing of substance is likely to happen through November and with the thieves on Wall Street needing to make some big money, selling short will need to happen. More for them, less for you.

I've gone out on the line but since I leave my posts online indefinitely  we'll know shortly so here's the prediction:
1. The "correction" will happen before the end of June.
2. It will be over 1000 points.
3. The Dow will end the year below 14,000 before it begins to rise again in January.   

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