Have we seen the lows yet?
Well, we’re oversold and due for a rally. Overdue, really. (Stop me if you’ve heard this before.)
Assuming we get a bounce, I’m still inclined to sell any rips higher that we see.
Someday we’ll buy this dip. Heck, we’ll back up our dividend truck. I just don’t think it’s time yet.
First, I’d like to see market breadth begin to improve under the surface. This is often what typically happens before markets bottom. We see individual stocks begin to “act better” than the Dow Jones or S&P. These leaders quietly establish their lows and begin to rally.
Unfortunately, the market’s breadth still stinks. Just 14 stocks in the S&P 500 advanced last Thursday. (How about those odds.)
Betting on rebounds (buying dips) works well when markets are trending higher. But when crashing as they are now, these cute strategies get investors in big trouble.
Let’s be safe, hold cash and wait until the other side of this mess.
“We’ve been extolling cash in these pages since the start of this year. As the Federal Reserve prepared to pause its money printer, we contrarians booked profits and stacked dollar bills.
We need to be nimble and ready to buy. The best deals happen at the end of bear markets.”
I offered some space under my mattress for those that needed it. Anything to keep a fellow contrarian from buying a “safe” bond fund that was about to get popped in the face.
Since your income…