2010 Second Quarter, worst for stock !!!
Volatility returned to global financial markets with a vengeance in the just completed second quarter, sending stock prices plunging and convincing investors to buy defensive investments, especially U.S. Treasuries and gold.
With the Dow Jones Industrial Average closing out the quarter at a new low for the year, many now believe that a 2008 collapse is a possibility. But all may not be lost.
Hulbert Financial Digest, which tracks short-term market timing newsletters, says their exposure to stocks fell to just 4.5%, down from 32.6% just one week.
And just why is that good news? Well, according to Hulbert (who has been tracking newsletters for 30 years) a majority of the newsletters get it wrong. In fact, if you did the opposite of what timing newsletters suggested, you would be much better off than those who followed their advice.
Better yet, try this advice: ignore all of the siren calls, market prognosticators, and financial experts. The fact is, no one knows where the market is headed. You will do best when you build a truly worldwide portfolio, create the correct mix between risky and less risky assets, and re-balance it annually. You will undoubtedly sleep better, worry less, and more than likely, end up with more money.
