Friday, November 14, 2008

How not to invest now

At this point, I pay no attention to the mainstream media proclaiming how inexpensive stocks are. The risk of investing in stocks at this point is extraordinarily high as the volatility (or risk) indicator VIX shows. The VIX is like the vital signs of an intensive care patient - which are all over the place at this point. I believe these spasms - at unprecedented high levels - will leave investors so jarred that they will stay away from stocks for a long time to come - and leave the stock markets at lows we haven't seen in a decade.

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