I am a little nervous of stock markets now, especially in emerging markets and Asia ex Japan. Every parent, neighbour and her dog is in emerging markets. Analysts are so bullish that every day we see "Buy Emerging Market Stocks" on newspapers. When markets are this bullish, I'm usually very nervous. Oh, and certain indicators that I'm looking at have crept up. Not good news. I don't think the bull run will end. I just think another bigger correction (than the latest which fell by 7%) is due.
I suggest taking some profits if they are over 20% in return. A profit is not a profit till you have pocketed it.
Why I'm Expecting a Huge Rally...
by: Jeff Pierce December 20, 2010
…but I also think it’ll be short lived to trick the masses.
Below are the links from the video.
•Financial Armegeddon http://www.financialarmageddon.com/2010/12/full-house.html
•Value Walk http://www.valuewalk.com/aii-surveys/sentiment-update-warning-distant/
•Traders Narrative http://tradersnarrative.wordpress.com/2010/12/17/sentiment-overview-week-of-december-17th-2010/#more-218
•Stockcharts http://blogs.stockcharts.com/chartwatchers/2010/12/market-poised-to-correct.html
