Dow Jones was at the weekly lows when I shared the possibility of a V shaped recovery. Now, that the index has had climbed back to around 12,000 zone it might be a good time to book profits. We can still have a year end rally, but the question is if the market will give up some gains before it starts moving again. Let’s figure out: – How should traders play the bounce? Is it [...]

Do you understand that minimizing your portfolio risk is the very key to achieving stable returns? I guess you do. But then you should just stick with Bonds, No? Well, why would anyone want to stay fully invested in bonds where the returns are almost negligible, rather negative if you consider inflation rates?

Dow Jones is trading around 11,500, down six percent from recent highs. Is there more downside pain left or it can stage a sharp pullback recovery? The globe is facing a balance sheet recession, and in the event of European debt crisis worsening further, we could once again witness a credit crisis. Well, that’s the fear prevailing in US equities, where the focus has shifted from domestic debt issues to daily news flow coming in [...]

People seeking a safe haven from the prevailing turbulence in the stock markets tend to drift towards cash investments. Such investments maintain a degree of security during times of turmoil but investors need to clearly understand the baggage of such investments. Yields of money funds are approaching zero, and after factoring in inflation the yield would be negative. However, in smaller doses this would be a reasonable thing to do as it can help you [...]

What is your take on US stocks for 2012 and few years beyond? Are you bullish? Well, you should not be that foolish amid so much uncertainty globally. Maybe, you might feel more secure with a bearish strategy. But, don’t you think we have already had enough of pessimism in the past years? So now you must be thinking that the market will remain range-bound, no wonder the past 10 years are seen as the [...]

For those who have been reading my posts on the current economic turmoil and the future as I see it, must have noticed that I firmly believe that we were never out of the woods. There have been so many events that have contributed in narrowing down the pace of economic recovery worldwide. Most of the 2011 has gone down as a year filled with fear and uncertainty. So, now is time to relook at [...]