Jittery investors leave stock market sagging - FUD rule

May 12, 2006 – 2:43 pm

If you're new here, you may want to subscribe to my RSS feed. Thanks for visiting!

Fear, Uncertainy, and their best friend Doubt have settled in the minds and attitudes of many investors these days. It’s no big surprise. The Dow has tanked and there’s even worse news for 200 dead workers in the Oil industry, which threatens a beleaguered supply chain.

Adding to this is the fact that the Federal Reserve raised the interest rate, and probably will do so several more times before year end. Overheated stocks are slowing down rapidly as summer approaches.

If you’re looking to buy stocks soon, you need to consider just how these economic factors will figure into your investment. Prices are going up. Inflation is kicking in. Oil is at a record high. All signs point to skittish consumers. Business will go on, as always, but it’s time to err on the side of caution, especially if you’re dabbling with stocks that have already ran up. Check the charts before plunging in, and make sure to set a tight stop, because this could continue for awhile.

If you enjoyed this post, subscribe to the Superior Investor Blog RSS feed!.

Post a Comment