The recent Bull Market has been impressive but with very unusual activity of late.During the first part of June my personal charts indicated a significant drop in the market place was possible, so I moved my equity positions into money market and cash holdings. Well, the markets did drop 500 – 600 points rapidly and I was relieved not to have been involved in that slide. One unfortunate point is that my charts don’t predict or indicate just how severe the drop will be. I doubt any chart available or construed could predict the ultimate lows in any market. Would be nice though to have that kind of info. I will keep working on it.
Having said this, although my charts have since returned to showing a buying trend, I am hesitant to return to equity positions at this time because September the “Ugly Market Month” of the year is just around the corner. There have been exceptions to this rule of course, but generally speaking September is definitely not a good time to be holding equity positions in one”s portfolio. I will leave it to the so called experts to explain this seasonal phenomenon.
Doug T…..The mutual fund guy
