Sunday, December 15, 2013

A sell-off coming, or another buy-on-the-dip opportunity?

A sell-off coming, or another buy-on-the-dip opportunity? Funny thing is, almost everyone wants to see the markets drop, but for two very different reasons.One camp wants the market to drop another five to ten percent so they can buy the market cheaper. They believe the economy is strengthening, and with several key issues--including the budget--out of the way, they believe a modest multiple expansion, with the potential for higher revenues, will make lower stock prices a buying opportunity.

 The other camp is convinced that tapering is beginning in either December or January, and that the stock market will not handle it well. They believe 2014 could be a real disappointment.


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