The stock market is being hammered of late. Everywhere you look the news is bad. GDP stinks as numbers are being lowered. Authorities warn us that unemployment will remain high for some time to come. Companies are being cautious, case in point Intel warning of slower growth ahead. Even Ben Bernanke of the Fed is stating he will stand ready to support a slowing economy. The policies of our government are coming under closer scrutiny and criticism is coming from many quarters. This is certainly the recipe for what we might expect to be a terrible stock market going forward.
This is exactly the time we must make sure human emotion does not take over our decision making. We must be vigilant knowing that bull markets start when stock markets look their worst. I am not saying we are at a bottom but I am saying IGNORE THE NEWS and watch the technicals of the market. If we see up days on increasing volume in the near future then that is the time to start buying even if the news STINKS. Human nature makes us buy at the top and sell at the bottom. We do not want to follow human nature we want to follow the technicals of the market - remain ready to buy.
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