Let me just put it simply, human nature does not promote good, consistent investment strategies. Only self discipline and knowledge can protect you. Even then, after taking all these precautions, the roads to riches remain perilous. Now for a quick market update. We remain mildly optimistic about the fact that the market may bottomed out in late December.
Stock prices have a tendency to go up as interest rates go down.
It seems that Fed Chairman Greenspan has seen the light and we can expect some more rate cuts in the future. Whether President-elect Bush will be able to deliver tax rate cuts is yet to be seen. Both of these actions will have a positive effect on the overall market. This is not a time to be diving in to the market with both feet, especially if you are a prudent investor.