Tuesday, March 06, 2007

Has the market topped?

The Guru's latest forecast hints that the S&P 500 will not rise above the 1400's over the next several months. It's unusual for him to emphasize an upper limit to the market, especially considering that the long term forecast is still positive. If he is right, (and he's been right every time so far) then the market is going to bounce around in a relatively narrow range of values, and it will be difficult to make a lot of money.

The only way to take advantage of this kind of market is to buy bull funds near the dips (near or below 1400) and bear funds near the peaks (above 1450). Hopefully that way I can collect a series of small gains that add up to a big gain.

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