Either way it seems safe to observe that stock valuations should face rough seas in the next 6 months as people used to 12-14% constant growth start to see 6% and less. Some observers have argues that cash flows demonstrate there is still money on the sidelines waiting to be invested (like much of mine) but I would caution that getting in at the top is not a wise thing to do. Even if the market goes up a few percent, I expect that a good cash account (returning about 5%) is a better place for your money than the market over the next year or so.
Sunday, April 15, 2007
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Weekly look ahead
» Weekly look ahead
Weekly look ahead
Either way it seems safe to observe that stock valuations should face rough seas in the next 6 months as people used to 12-14% constant growth start to see 6% and less. Some observers have argues that cash flows demonstrate there is still money on the sidelines waiting to be invested (like much of mine) but I would caution that getting in at the top is not a wise thing to do. Even if the market goes up a few percent, I expect that a good cash account (returning about 5%) is a better place for your money than the market over the next year or so.