I was talking about investments with a buddy at the local coffee shop and the subject phrase came up, "everything seems so risky." Stocks are up like a rocket, up 75% from last year's lows, 100% on RUT. Small investors are piling into bond funds like there is no tomorrow, while every other pundit is telling clients to avoid long term bonds, or even short them. Gold has had ten straight up years, has already quadrupled in price, and every major talk radio show has a big time gold sponsor.
It isn't always like this. There are times when folks are afraid of certain asset classes at the coffee shop and that asset class is beaten to heck and shunned.
I have used the phrase before "don't do anything stupid." I think that applies now. There is no need to be overly aggressive. As always, for the average investor, diversifying into age appropriate assets is almost always the best course. Do so gradually, buying and/or selling in small increments to reach the desired allocation. Those interested in low maintenance approaches can search on "lazy portfolio."
For traders, as always, this isn't an advice blog, it is an online trading journal, with occasional observation and commentary. Right now, virtually all the money is being made by bullish stock market traders. Only the most nimble bears can make money by "running between the rain drops" so they don't get wet.
Some day the bull party will end, the trend will change, but for today, the bull is still in charge. We are approaching a seasonally weaker period in the stock market for May/June and then for the entire summer.
Long GLD, SPY, TLT
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