Are you ready for the next major intermediate decline in stocks? It will happen, and it may be sharp, but it will not be the end of days that everyone will think. Pay no attention to the people claiming "sell! This is the end!" ... it isn't ... at least not yet. The Dow has been dragging the transports around kicking and screaming, and even though the transports remain in negative territory, they will eventually play catch-up.
In fact, those shrewd investors who are able to pick up shares of great companies that go on sale during the next sell-off will do very well for themselves heading into the fall.
I expect the major indexes in the US to follow the next leg down. I think it will make a fantastic time to start nibbling on tech stocks again, as well as for a tranche of our Gold Producer ETF holding, GDX or the RBC global precious metals mutual fund (for Canadians only). I think that many stocks will be subject to the current trend of volatility, especially those who have posted weaker earnings and/or lowered future estimates. It's just the way the wall street cookie crumbles ... but the time-tested method of analyzing the markets that we employ will enable us to be positioned ahead of the crowd.
When the next decline happens (it must happen at this point ... and sooner than later), don't be afraid ... be happy! Scoop up shares of companies you've been analyzing and watching when they become oversold (an RSI reading of less than 20), or even better, when/if both the RSI and the William's %R read oversold on your prospect's weekly chart.
And take some time to rest while you wait.
I know I will be
R
