There are a lot of reasons to be tentative right now with respect to this market, so I thought I’d make you a shorthand list of what I think are the top 10 reasons to be cautious. Your own order may differ from mine, but the order isn’t as important as the fact that all of these reasons represent a pretty hefty worry list -- a worry list that I think every investor needs to pay attention to right now.
10) The markets remain below key short- and long-term technical levels
9) Consumer sentiment is at its lowest level since 2009
8) There will be no cooperation in Washington to fix our debt and budget problems
7) Employment growth remains stagnant
6) Economic data is likely to come in week in Q3
5) Many international indices already are in bear market territory
4) Nobody trusts the banks, and nobody knows how they’re actually doing
3) Europe’s fiscal situation remains a mess
2) Treasury bond prices are signaling recession
1) September is traditionally the worst month of the year for stocks
I’m sure there are plenty more reasons for caution, but these are my personal top 10. That’s why right now I am waiting things out in the safety of cash before putting my money to work.
If you’d like to find out when it’s time to jump back into the equity pool, then I invite you to check out my
Successful Investing advisory service today.