Building a portfolio that can survive anything
by Brett Arends, Market Watch:
Main Street investors withdrew billions of dollars from the stock market last week—just before stock prices rallied.
And according to reports, they put the money into bonds—just before they fell.
This latest example of bad timing was a reversal of what was happening in the weeks before Christmas. Back then, Main Street investors were pulling money out of bonds and throwing it into the stock market. Naturally, this was just before stock markets tumbled and bonds rose.
So many investors act like the proverbial cat on a hot tin roof, always in motion, always trying to guess which way to jump next. Will new Federal Reserve Chairwoman Janet Yellen stop “tapering” bond purchases if the job market remains weak? Will China tank? Will Puerto Rico default? Will inflation take off?
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