Stocks: The Road Ahead

“What’s going to happen to the stock market in the near term? The market is likely to continue rising until ‘something’ gives, either higher interest rates or lower corporate profits. That ‘something’ may be unknown but it will be a negative event, whatever it turns out to be. So, risk is high and warning signs are flashing:  1. Stock trading volume is ‘dead.’ Almost nobody is buying and sellers have their hands on the sell button but waiting for a trigger.  2.  The largest buyers of stocks are the corporations themselves, which have a notoriously bad record of buying at market tops. The smart money (hedge funds, corporate insiders, and institutional investors) are currently net sellers. […]”

http://www.investingdaily.com/20998/why-small-caps-make-sense-for-retirees/

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