Is It About Time You Take Advantage of the Market’s Near-Term Volatility?116 views 2013-06-29 00:29 Tags: investor blank desired housing recent
I think Federal Reserve Chairman Ben Bernanke’s recent announcements got him his desired effect. Let me explain why.
The housing market was sizzling with bubble-like characteristics, and the stock market was in overdrive with the S&P 500 and Dow tacking on record after record.
Everybody from the retail investor to the Federal Reserve members to the pundits were attributing the gains to the easy monetary policy aggressively being pushed by the Federal Reserve.
Well, Bernanke did the right thing, and while things are not exactly calm at this moment, prices in the stock and housing markets have adjusted downward to more manageable levels.
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On the charts, the major indices are all below their respective 50-day moving averages (MAs) and showing weak relative strength. As well, the S&P 500 has corrected 6.77% from its May high.
But I’m not convinced the worst is over yet. In my view, the potential of more downside moves is real and could likely surface. This would provide a buying opportunity to look at adding stocks.