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Is a flat market likely?



March 18, 2010 – Comments (4) | RELATED TICKERS: V , INTC , MA

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, 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?


4 Comments – Post Your Own

#1) On March 18, 2010 at 7:38 PM, chk999 (99.97) wrote:

Flat markets occur when people are really bored and investing and the market is not getting any attention and trading volume is low. We don't have that now. So a range bound market looks more likely. Whether the range centeroid drops or rises is a different problem and I can't call it. Stuff doesn't look cheap right at the moment, so a watchlist seems like a good way to proceed.

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#2) On March 18, 2010 at 7:47 PM, portefeuille (98.85) wrote:

range bound for a while -- bouncing up and down

yes, just not a "flat range". see this post.

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#3) On March 18, 2010 at 7:50 PM, portefeuille (98.85) wrote:

(and I told you so almost 9 months ago now, so chartists, don't complain about how "crazy" this market is. it is incredibly boring, hehe)

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#4) On March 18, 2010 at 11:04 PM, ozzfan1317 (70.58) wrote:

I still Like KO,BP,PG,JNJ at these prices I own BP and KO got in around 40 on each. NUE looks to me as well I also have the rest of my portfolio in small and Midcaps. Check ozzfan1316 if you want to see my real portfolio.

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