I recently got two emails that I think perfectly illustrate the dilemma many investors face now.
The first came from technical analyst Mark Arbeter of S&P Capital IQ, who wrote:
“We think that the stock market is close to beginning a consistent move higher, with prices entering a very narrow bullish channel where pullbacks are shallow, leaving many investors on the sidelines. Generally, those that are underweight equities during this advancing phase are left frustrated waiting for a decent-sized pullback that never materializes. This type of consistent push higher, if it occurs, will be a very welcome sight for those already in and calling for higher prices…We see the [Standard & Poor’s] 500 heading up to 1,450 by September, 1,500 by October, and potentially as high as 1,600 by the first quarter of 2013.
“I find it almost unprecedented to see such fear concerning stocks and the economy, with the market well above its most recent (June) low, and over 100% above its last bear market low from March 2009. “
Read Full Article »