Local radio financial planner says "get out of market now" dallas

dallas/fort worth local radio personality says get out of the market now. whats your opinion.
smitty43
Asked Jun 19, 2010
When someone makes such a prediction it's important to understand what time frame he/she's talking about.

There is good reason to believe that economic growth will fall short of market's expectations in the long term. The belt tightening and coming tax increases in Europe and the U.S. increasing it's borrowing which will lead to the same thing here farther down the road, doesn't look good for the long term. In other words, I wouldn't put my money in the market and go on an around-the-world sailing trip. You might have to hock the boat when you get back.

An improved U.S., medium term outlook depends on a lot of hiring taking place in the U.S. private sector. No good sign of that taking place yet and the government is running into Congressional headwinds on more stimulus. That means the mid term recovery could drag out to long term.

In the short term, the market will go up and down like a roller coaster. The fact that it's up right now probably means that the next leg is down. Watch the level of 1124 on the S&P 500. It's hitting a lot of resistance at that level so it will take some really good economic news to push it beyond. The problem is, good economic news is rather scarce these days.

In total, my opinion is that the radio guy is probably right. It's very seldom that the stars for long, medium and short term align but that seems to be the case right now in my humble opinion.





Rob
Answered Jun 19, 2010

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