Among the investors now, there are bullish camp and bearish camp. We belong to the bearish camp. We are very cautious now.
Here are our reasons:
1. Stock markets are very high now. Most of the stock indices are touching their resistance levels. Hence a pull back can occur anytime.
2. Volatility Index (VIX) is at all time low now. This shows that there is a high level of complacency in the market now. If there is a sudden bad news that can shock the financial market now, stocks can fall fast and hard.
3. Our quantitative analysis has shown buy signal for US Treasury Bonds. US Treasury Bonds usually moves up when stock market falls or if there is a risk off sentiment. This is a early warning sign for stock investors.
At Tactical Trading Academy, we had sold some stocks to raise cash for our portfolio. So in the event of a stock market correction, we will have sufficient cash to buy stocks at cheaper price. In addition we had bought insurance for our portfolio as well.
To find out how to buy insurance for our portfolio, sign up for our learn investment program, we will teach you how. We will also teach you how to invest in stocks that come with a margin of safety. To view my stock statements, click here for 2012 statements, click here for 2011 statements.
BL, CEO of Tactical Trading Academy – For Your Profits, Your Success Is Our Success!
“If you don’t study any companies, you have the same success buying stocks as you do in a poker game if you bet without looking at your cards.” – Peter Lynch