I know I said a while back that we (investors) were getting to a point where it would be a good idea to move money out of bonds and conservative investments and into U.S. stocks and just "buy and hold" them...well I have yet to do so and I would warn others from doing so at this point. While I undoubtedly believe the U.S. economy is growing and will continue to improve in 2012 and that U.S. stocks represent a good place to invest ones money, I still think there is too much uncertainty in the markets. The markets are continuing to act in a sporadic manner, and I'm finding it hard to pick on specific trends, whether they be up or down. As I've said, the market has no memory from day to day.
I still hold firm to the investment thesis that reallocating ones portfolio out of bonds and conservative investments and into stocks is the way to go, I still want to see a bit more clarity on the European front. There is a summit being held friday and this weekend by lead members of the European Union (France, Germany, etc), but I (and others who monitor the European situation) do not foresee much coming out of it. At some point, there will be resolution in Europe, whether big or small, and it will be the time to aggressively buy U.S. stocks, but for now, especially in light of the big rally in the markets in November, I am erring on the side of caution. If you can move in and out of the markets, and be opportunistic in doing so, then the markets are perfect for that type of approach. BUT, if you own mutual funds or are adverse to buying and selling over short periods of time, then I would focus my attention on the holiday season!
