Put simply, the stock market is unplayable at this point. Volatility is crazy to the up and downside, the market and stocks have no trend or direction and there's no telling what is going to happen from day to day. This is not just my opinion, but also the opinion of several long term successful managers who I listen to and work alongside with.
Several things have come to light however:
- a lot of stocks have gotten crushed and are very cheap (I've been tempted to buy but have not for the most part - although the technology company Twitter is looking EXTREMELY attractive at such a low valuation/price - I expect someone to come in and try to buy the company)
- it is being forecasted that the Federal Reserve and their Board of Governors are not going to raise rates anymore this year b/c the markets and the economy are struggling
- oil is still moving in a random manner being down 3% one day and up 5% the next day
- mutual funds have gotten crushed this year with one of the best known and successful money managers (Bill Miller of Legg Mason) is down 20% YTD
- at some point, new money is going to start coming into the markets and we will see stock prices move up...
Until then, it is best to err on the side of caution and not be too aggressive in buying stocks/mutual funds...at least for now.
