The Market

I haven't mentioned the stock market for some time. There has not been much to say, as we have been trading in a "range". About 7900-8900 on the dow. A great traders market!

However, I am going to go out on a limb here and say we have lower to go.
I think we will have another big drop to about 5500. From there we could have some major volatility and rallies up to 9000 or so. If you are a trader this presents fabulous opportunities.

I had a good friend ask me if their family should be buying more stocks right now. My answer: only if you have a 25 year time horizon. Otherwise, steer clear until about 6000 or 5500. Then you can start dollar cost averging your way back in - IF you have a 15-20 year time horizon.

If you need your $ for debt payments, to pay your mortgage, or for daily living expenses you SHOULD NOT BE IN THIS MARKET! SAVE SAVE SAVE! Build up a little cash reserve, pay off all your consumer debt, pay off your home equity loan or second mortgage if you have one. Then build up a huge emergency fund. Then, and only then, should you get back in this market!

Good Luck!