Tuesday, March 5, 2013

Stock Market Signals-and what to do about them

I don't like stocks now,said Dennis Gartman,editor of the well-known newsletter "The Gartman Letter."I wouldn't be surprised to see 10% to the downside.After triple digit moves four out of five days,I'm on the sidelines and glad to be there.
I want to own bonds and gold.It'll be price action that brings me back in.For a while,it's a risk off environment.
What really bothers me is,the bond market is doing really well.It's up,telling you that risk is being taken off the table.The bond market is the smartest of the markets,and it's going up.The worst of the liquidation of gold may have passed.I'm holding gold in yens,and may add some in euros.
Christian Thwaites,President and CEO of Sentinel Asset Management does like some stocks.Large cap equities are still very low-priced and an attractive value,such as General Dynamics,Caterpillar,Church and Dwight.He also likes Ritchie Brothers Auctioneers.
Thomas Lee,Managing Director and US Equity Strategist at JP Morgan,said we still think we're in a secular bull market.We got a caution signal the week before last,but this is a tactical,short term call.Hedge funds are basically all in.We want to be dip buyers in areas such as materials,industrials and consumer discretionary.
General Dynamics(GD),Caterpillar(CAT),Church and Dwight(CHD),Ritchie Brothers Auctioneers(RBA)

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