2007-06-14 10:22:22 · 6 answers · asked by sig21792 2 in Business & Finance ➔ Personal Finance
I meant staying with SPY (S&P) or going inverse with SDS (ultra short S&P ), over the course of this summer ...
2007-06-14 11:37:32 · update #1
The stock market has an upward bias of 10% a year. So I suggest going with the flow, be long.
Also I believe that we are in a global boom right now. China, India, Russia, etc. all booming. The technology we have now in the world allows for a great productivity in producing goods.
While no one really knows the short term direction of the market, the history over the last 100 years is a steady climb upward.
2007-06-14 10:29:29 · answer #1 · answered by Patrick M 2 · 1⤊ 0⤋
Shorting Google MIGHT make sense, but shorting the whole market is just plain silly. Think about it, if the economy collapses, do you honestly think you'll be able to collect on your short sale?
Don't swim against the tide, you'll just get sore arms! The S&P has been rising at ~10-12% a year for SIXTY YEARS (it's entire existence, the Dow for over 100 years, do you really think human nature (which is what actually drives the market) has changed any during that time? Did it change last Tuesday, suddenly?
Go long. Far more reliable, far less stress!
2007-06-14 17:43:29 · answer #2 · answered by Anonymous · 0⤊ 0⤋
On average, the market finishes up 2 out of every 3 years. If you buy and hold, you will come out on top, barring the apocalypse. But trying to short the market is gambling, not investing. Even if you come out ahead this time, I'm betting over time you'll lose money.
Check out The Little Book of Common Sense Investing by John Bogle- one of the best things I've ever read!
2007-06-14 18:31:14 · answer #3 · answered by fawkesphoenix 3 · 0⤊ 0⤋
you can't short the market...
For most investors, these are not good strategies. If your aim is long term growth, look no further than mutual funds providing market indexes - either total stock, or a broad index like the Russell 3000. Historically, (20 to 30 year horizon) no-one beats the market.
2007-06-14 18:03:14 · answer #4 · answered by Anonymous · 1⤊ 0⤋
The only accurate stock market prediction ever made is as follows: "It will fluctuate." Any other prediction is either wrong, or does not apply to the market as a whole. That said the US stock market has been 'up' for more that 95% of every 5yr period in its history and 100% of every 10 yr period.
2007-06-14 19:08:55 · answer #5 · answered by STEVEN F 7 · 0⤊ 0⤋
Market is poise for a correction after continuously moving upside. To Long now is risky. To short now could even worst.
Wait patiently for the correction.
2007-06-14 18:22:06 · answer #6 · answered by jean l 3 · 0⤊ 1⤋