Sunday, June 5, 2011

Time to get on board?

The CLSA fengshui describes that the period from Jun to early July will not be good for stocks this way, "Not as good for the market, but chance of getting value for a song."

Indeed, global markets have fallen since beginning June. But Henderson's Bill McQuaker (deputy head of equities)has called on investors not to panic, saying a double dip is unlikely. Saying investors should worry less, but invest more, he says the recovery is following typical pattern of economic recovery so far.

Vice-chairman of Blackstone Advisory Partner's Byron Wiens is of the same view. He thinks the S&P can get to 1,500 by the end of the year, and investors should be looking for buying opportunities right now. He expects the index to fall 10%.

Contrary to these two opinions, are the views of financial newsletter writer Michael Lombardi's view that the reward to buy stocks is no longer worth the risk. However, he feels that the "bear market rally" in stocks may not be over.

As for me, I tend to still believe we are in the mid to late cycle of a bull market. As such, the current lull is yet another opportunity to accumulate stocks. I am definitely a buyer in these times, and will be continuing to buy as the month prgresses.

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