Sunday, March 14, 2010

 
 
 

 
 
 
 
 
Don't buy this bear market rally; real boost coming by July
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Thursday, April 16, 2009
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By Daily Crux Editor Sean Goldsmith:

It's tough to make money in a bear market. Long-term investors see their stock holdings deteriorate. Traders get whipsawed by extreme volatility. Not until the market has shaken everyone out, and no one wants to touch stocks, does it turn around. But there are several suckers' rallies along the way to suck a few extra dollars from investors.

And the recent stock rally has been just that. The trading volume was too low to be a real turnaround. According to NYSE Chief Executive Duncan Niederauer, "The real money investors are still waiting. I think they're waiting, they're watching. They want to make sure that what we saw in March is real. And I think once they are convinced, you will know it. The market will have a totally different tone to it."

He expects the "real money" to jump in around June or July.

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