Saturday, October 23, 2010

Why this may not be the best time to be pouring money into the markets

The stock and commodities indices are registering new highs...public are warming up to the markets again... is the party going to go on or soon end?

Well, history has demonstrated time and time again that when it is when the general public is most bullish, that it is always the worst time to invest. A useful indicator, the CBOE (a sentiment gauge) is now at a bullishly low of 19. I am not saying that the markets will not go higher, but this is the best time to take profits, not institute fresh positions.

This article outlines a few key reasons why markets may be priming for a fall.

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