It is Monday August 19, 2013, and it seems that everyone has left the building. History has shown us that from August to mid-September equities are not in the forefront of investors’ minds and many money managers are just trying to hold on to what they have gained. The net worth of American households have increased by 14 trillion in the past two years as rising house and stock prices have moved up very nicely. Of course, those not invested properly did not experience these gains.
I keep receiving the same old question, “Is it too late to get invested?” My answer is if you compare it to March 2009, yes. However, I believe we are still at the beginning of a super-cycle bull market that will have a totally different driving force, but will provide gains similar to the one that 1980 to 1998 provided. Be aware corrections will be experienced. That is why academic based portfolio management and a skilled and experienced advisors/coach will become very necessary to profit this next bull cycle.
For the short term I view the market as oversold. Once this fear of easing by the Fed subsides and the professional traders get back to work we should experience a strong year-end rally and gains continuing into 2014. A time of digestion and a possibly mild correction would not surprise me over the next two months but the train that left the station in 2009 has slowed down enough that all of the hold outs are being offer a chance to get aboard.