Slow down now… A new year alone does not fix the economy. If anything it covers up the faults for SOME TIME. Keyword – some time. While it is nice to ride the run we have seen over the last couple of days, be cautious before throwing all your money into the wind.
Think the Santa Claus Rally.
History has shown that stocks do not head up in a straight line. Usually there is sideways movement (consolidation) before a change in trend. So we could see a couple up days and couple down.
Not convinced yet? Let’s wait and see where the market ends at the end of this coming week. Here’s what we are expecting to find out this week:
- Not whether more people got fired, but how much more.
- How much less people are spending on construction.
- We learn how the next administration will spend the remaining $2 of the TARP package.
- Round the week out with our consumers are not buying anything (except at Walmart).
Don’t rush it! Just because you may have missed one run, don’t think it is the last.
Stay patient, stay cautious… 2009 is here.