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What’s Your Dow 14,400 Strategy?

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“Now is always the most difficult time to invest.” — Anonymous

Here’s the deal — I need your help…

I’ve already enlisted a group of my Rude Awakening readers to give me their thoughts on the market. Now I want to know what you think.

So tell me…what are you doing with your money as the Dow posts new highs? You don’t need to get too specific — just tell me what your plans are. Are you buying stocks? Bonds? Gold? Or are you a seller?

Or maybe — like a lot of long-term investors — you’re still waiting it out.

Once I get your answers, I’m going to compile them using very unscientific methods — just to get a feel for the mood of the market — albeit using a very small sample size.

Responses so far have been mixed, to say the least. Some investors are ultraconservative. Others are anxious. Many just don’t know what to think…

I understand why this market can paralyze even the clearest thinkers out there.

The trend is clearly higher… but stocks aren’t as cheap as many would like them to be.

Stocks are at a critical inflection point… but a debt crisis stateside and abroad could squash growth.

It’s also easy to paint stocks and Wall Street as the big villains right now. While the Dow has marched higher for four years, your income isn’t growing. Gas prices are high. Europe continues to slowly fall apart at the seams…

But that’s all right. In fact, a lot of very smart people don’t know what to do right now. If I picked 10 expert market analysts and locked them in a room, promising food and water once they reached a consensus on this market, they’d all be dead within a week…

In fact, conflicting signals from economic data, analysts and fund managers are what prompted me to conduct this informal survey.

I received a reader email about a couple of surveys on Yahoo Finance…

“One was last week as the Dow was knocking on the all-time-high door,” she wrote. “It was something like: With the market near all-time highs, what are you doing with your money?

“42% of the responses were ‘I’m still waiting to get in.’

“The other survey was maybe a month ago, with very similar results: 41% of responses were ‘Still waiting to get in’…”

What it boils down to is this: Who’s watching and waiting? And what are their reasons? Yes, a lot of new money rushed into stocks to start the year. But that’s nothing compared with the $250 billion investors pulled from stock funds since early 2009.

Most people don’t trust this market — as evidenced by all these surveys you’re seeing. And my guess is that a majority of armchair investors won’t become comfortable buyers until their more adventurous neighbors start making money in the markets again.

Despite the fact that this bull cycle we’re experiencing is now four years old, we can still safely say few believe in stocks right now. The past 13 years of bubbles and crises continue to weigh on everyone’s mind.

So what do you think? Are you safely navigating this market? Or, in your opinion, are we in a “not safe for trading” environment?

Tell me here: trendplaybook@agorafinancial.com

I’ll report back to you with the results soon…

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What’s Your Dow 14,400 Strategy? was originally featured in the Tomorrow In Review.


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