Tuesday, November 25, 2008

Bottom of the bear?

What to do now?

Throw out my rules on waiting for an uptrend, buying relative strength and momentum.

There is no uptrend. But this has got to be a buying opportunity. Major risk now is missing a bear-market rally.

VDC, VHT, KRE, IAT had decent RS. Been buying on weakness, taking deductible losses as they come.

Recommend list as of 11-25-08 is (with a smattering of foreign ETFs, which I might increase, since EPP, EWA, EFA, have picked up steam in recent days):

IAT 2.60%
IGE 3.58%
IYM 3.64%
VHT 4.42%
DVY 5.64%
VDC 11.21%
SHY 13.70%
TLT 16.97%
TIP 29.21%

As noted, this asset mix is probably way too conservative.

Bear rally on horizon--B. Biggs

Baron Biggs figures a big bear market rally is in the offing.