No Place Left to Hide … Almost!
18th January 2008
The Dow and the Nasdaq have reached levels not seen since March of 2007. Thanks to the Financials, the S&P 500 is in even worse shape, reaching levels it has not seen since September of 2006. All 3 of these indexes are sitting at support levels that could provide support, but I certainly would not count on that. It is likely that we could see a bounce from here, which again would be an opportunity to lighten up on any remaining long positions in your portfolio.
The safest place to hide lately has been the 3 G’s Grains, Gold, and Good old treasury bonds.
Those of you looking for a little more action (and potential return) than just moving to cash could always try trading Inverse ETFs, Put Options, or Short Futures Contracts.
- JD