I mentioned that we have entered into a correction since 27 March. So far, most indices have fallen by 3 -5%, which is not much. It increasingly looks as if there won't be a repeat of the May - Aug 2011 correction. Back then, the OECD Composite Leading Indicator was heading south, signaling that a recession was imminent. This time round, the CLI is turning upwards. As mentioned in my previous post, when technicals look bad but fundamentals look good, my suggestion is to do nothing.
http://musingsonwallstreet.blogspot.com/2012/04/what-to-do-when-fundamentals-point.html
It's still not a time to buy yet. I would wait till May to see how things pan out. There's a saying, "Sell in May and go away." So far it held true in 2010 and 2011. I'm not sure if it will hold true again in 2012. History seldom repeats. It rhymes. I believe we could have an extended run all the way till the 2nd half of 2012. But do not rush in yet. Let's be patient. Hang on tight. Be increasingly diversified across high yield bonds, high dividend stocks, 10% into gold and do lots of alternative funds like Amundi Volatility WOrld and Winton funds.
