With unemployment at 9.7%, unemployment benefits continuing for over 2 million people in question, consumer confidence at extremely low levels, and March 15th quickly approaching, I do not see the markets going higher. I see the DOW falling back to 10,000 in the next few weeks. If it does, I will be buying stocks, but am not buying aggressively at current market levels.
Historically, the worst period for investing in the stock market is between March 15th, and October 15th, which starts very soon. Last year, the markets rallied from the March 6th, lows, but during that time we were not sure if we would even have a stock market any more, relatively speaking.
Although earnings last quarter were good for corporate America, the economy needs Mr. & Mrs. America to be out spending money. Outside of the lines I saw at Home Depot this weekend, I don’t see many people out in restaurants or cars at the shopping malls. Even if the overall stock market is not going to go much higher at these levels, there is always stocks to buy. If the market pulls back, that is when you want to keep buying and waiting for the consumers to help corporate America push the economy forward, and the DJIA over 11,000.
During a period of time which the markets are trading sideways, one option to use for making money is Selling Covered Call Options. If you are not familiar with that strategy, ask your current financial advisor or some of you who are working with financial salespeople, ask them about Selling Covered Call Options. When they tell you they don’t know much about it or use those strategies, because they only know how to promote mutual funds, you should email or call me. I will be happy to educate you on this strategy.
If you would like me to review your portfolio, have me give you a second opinion on your investments or hire me to be your Financial Advisor/Portfolio Manager, please email me at JimWigen@GetWealthyStayWealthy.com. Continue to check my website for updates on stocks I am buying and selling for my clients.