Yeah, I’m still negative. This market I believe is going to be one of the most treacherous since 2000.
The credit crunch caused by homeowners’ default is real. There is going to be no way around the deflationary force. The only way to combat it is by even more inflation. However, both inflation and deflation takes time to generate or unfold. And my own guess is that right in the middle, market will sink like a rock.
Time-wise I believe, that middle point is still quite far from now. And therefore, I’m still negative.
I’m going to watch the market closely. But for now I will probably not going to add more. The intermediate picture is simply not pretty, although short term rally has the potential to break the previous high.
I cannot invest my money based on a short term picture, because under this volatile market, the money can be gone in a second. My lack of time to trade only allows me to invest for intermediate to longer term horizon.