Is a flat market likely?
I'll admit to casually talking about the market "flattening out," but with history as a guide, it looks really unlikely that a truly flat market is a potential. What seems more likely (and plenty of other folks have been talking about this for a while) is that we'll continue to be range bound for a while -- bouncing up and down while we work our way down to lower valuation levels.
How should we manage this? As I wrote today on Fool.com, I'm thinking a two-pronged approach:
1) Making a wish list of good companies you'd like to own at lower prices (I noted that I've got my eyes on Visa, Mastercard, and Mindray Medical).
2) Jumping on investments that make sense today. Recently I've been on board with folks like Barton Biggs and Jeremy Grantham, thinking that large-cap U.S. equities look pretty attractive. I've been particularly focused on those that also are kicking out a decend dividend yield. (I've snapped up stocks like INTC, MCD, and KO).
Thoughts out there? Are you with me? Think I'm crazy?