Today is the end of the "Easy Money"...
Back on November 7, 2009, I posted The Market's New Run Up Has Begun. And as you know, a lot of stocks had 50+% returns since then (In December, my CAPS rating went from <20 up to 97).
Today I think we entered into a "no easy money" zone I described back on September 14, 2009, in this post here:
After that, shortly before or after November 6, the market will start its march up again, and will go up for good 5-6 weeks. Of course, the S&P's closing price at that time will be higher than today (my guess is: DOW around 10,500, S&P around 1,200). I'm specifying this as this will be the last (great) opportunity to profit this year (hint: buy stocks that are leaders now, but will fall hard during correction. You'll double your money, at least.)
And that will be it for this year. At that time, media (same media that was sceptic all this year) will be celebrating a great year for the stocks, will be listing this year's winners with huge returns,... basically will be doing everything (but not on purpose) that will entice the average small investor (also called: show-me-good-news-investor) back into the market.
Of course, a frustrated small investor (who will be kicking himself/herself for missing this year's rally) will jump back in with both feet.
Unfortunately, 2010 will not be near as good to the stocks (and brave investors) as 2009 was...
There will be plenty of opportunities for skillful traders, but the small investor will once again be asking herself/himself: "Remind me, why do I invest in stocks...?"
(But there will be some good news in 2010 for those investors: The economy will improve...)
I'm not suggesting one should get out of the market completely at this time, but I think it would be wise to take some money off the table as I expect wilder swings in market's direction for another two months or so. Nothing huge, just wilder. Just my opinion.
Of course, do not sell CNO... :)