Is the 2009 Market a Market of Stocks or a Stock Market?
I have been beating the bullish drum rather loudly of late, because I think 2009 will be a good year for the stock market. I’m convinced that the bearish sentiment that has been holding the market down is about to end. I have expressed this view several times in the pages of Early to Rise as well as in Investor’s Daily Edge.
I need to make one thing clear, though. While I think the overall market will be higher over the next 12 months, that doesn’t mean I think you can buy any old stock and make money this year. There are still potential landmines out there, and you will want to do your homework.
For instance, I think the homebuilder stocks are ready for an incredible turnaround. But rather than picking one company, I’ve recommended the Spyder Select Homebuilders ETF (XHB). This gives you instant diversification with a number of homebuilders, without company-specific risk.
One sector that’s still filled with problems is the financial sector… so I’m shying away. While the financials are benefiting from injections of capital from the Fed, how many skeletons are still in the closet?
[Ed. Note: You may be cautious with your investments right now... but you have to be ready to take action when the moment strikes. There are going to be some incredible opportunities out there, and market analyst Rick Pendergraft has put together an educational program that lays out the simple steps you need to take advantage of them. Not only do you get three months of Rick's best recommendations, you also learn how to make good investment choices yourself. Get the details here.]
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