Thursday, March 30, 2006

Don't Fight The Trends...

About a month ago, I began to look at 3/31/06 as a possible inflection point in markets. Timing the markets is never advisable and the trend right now is up. Despite the multitude of structural issues facing the US economy right now, the big money wants to move the market higher and I would not throw good money after bad trying to pick the inflection point right now.

I think there is still a decent chance that the markets push up another 5% from here, but the valuations of every sector are getting increasingly less attractive. I'll have Nasdaq and Banks on my screen as possible Put LEAPs, but timing those purchases will be tricky.

On a lighter note, the proportion of online shoppers that are not using available tools to scour for the lowest price is surprising to me. Before any online purchase I visit Dealcoupon to check to see if the store has any online specials (free shipping, coupon code, etc). Half of your searches might not turn up a valuable coupon, but it's a simple search that can save you some real cash.

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