As a whole, I have a hard time being positive about this market.
We saw good gains between November 2012 and May 2013 when US stimulus easing was announced.
You could’ve been fooled into thinking that the Bull was back.
The market then traded sideways in June and jumped this week as the US announced that the easing of stimulus would be delayed until inflation improved and unemployment dropped.
My concern is that the easing of the stimulus has to happen at some point, and until it does we will not know how the economy is really travelling.
China has announced a slow down and which means our unemployment is set to increase further.
The election has put all business on hold and another leader change has enforced the no action policy.
I expect buying the market wholesale will result in large capital losses when the above issues start to come to a head.
I continue to look for good quality companies, which have been oversold.
Cherry picking the market to me is the best way to build a long-term portfolio and reduce the risk of short-term capital loss.
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