Wednesday, September 22, 2010

Newsletter writers are calling for rallies ahead... time to exit stocks?

Richard Band has called for everyone to make sure that we’ve bought all the stocks and funds you’ve been wanting to buy before October 15. Because after that, a powerful rally will drive blue chip indexes back to their April peaks—and higher!

His reasons for buying:
-Since 1995, the S&P has suffered six dismal Augusts—just like the one we experienced—YET in every case, the rest of the year has clocked a gain!

-The double-digit recession crowd is being muted, as industrial-commodity prices hit a new 2010 high in early September.

-Investors are beginning to sense that there’s going to be a big GOP win in the midterm elections.

-Up until a couple weeks ago, investors had left the building. But they are now returning.

P.S. Richard Band called for a buy back in March 2009 in stocks, and he was right on target.

Another newsletter writer, Louis Nevallier wrote that "current market forces have put me in one of the most bullish moods I’ve been in in quite some time". He recorded his reasons in this article.

With so many people turning bullish, is the market due for a correction? I think it may. But if it does, I will add to my current holdings.

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