My 1st Million At 33 – yes, you can do it too

Based on how markets are opening around the world, I think it’s very positive. Obama will be delivering his inaugural speech around Jan 20. I believe that markets should be strong this month. The fact that the markets are not tanking after rising some 5 to 10% thru the thin volume tradings in the holiday seasons is an extremely positive sign. Still, we will need to see how this very first week will turn out.

Currently, global markets depend on how China can pull thru its stimulus plan. If China can “soft”-land, then commodity prices will have a VERY strong rebound. Infrastructure/commodity-related stocks will also rebound strongly. The general markets may still stay subdued somewhat. I think markets will certainly make an anticipatory move, but if the actual economy does not confirm the move, expect another big washout and possibly new low this year.

Currently, the most positive thing for this market is the investor sentiments. Most investors simply don’t expect anything good to come out of 2009. That should produce a sizeable counter rally. The negatives are pretty much everywhere, and I put a impending bond market pull-back to be the top of my list. It’s possible that bond markets won’t have a significant pullback in 2009, but rather later in 2010. But if that pullback starts to happen, one should get out of all stocks, and also $US. I kept thinking that unthinkable would not come (so fast), and yet things are happening at a much much faster rate especially once the ball gets rolling. I’m not counting on myself (or majority of the investors) to be able to react to it, and therefore, I have positioned myself accordingly in precious metal sectors.

A pullback in PM sector here will be healthy, and I will probably start nibbling a little again.

Best luck in 2009.