Bearish News

Well, we thought it was going to be a tough week for the markets, and with the Alcatel-Lucent downbeat announcement it looks like it will be a really long week for tech. Even thought Mr. Cramer likes to say “there is always a bull market somewhere” even he was saying on his street.com TV show that the markets will be on a down trend until the middle of the year, hopefully, by then the fed will ease, and markets should pick up and finish the year with the Dow at 15000. By the way, last year he was 7 points off his prediction for the Dow.

So, what will we do until then you ask? Personally I will hold on to my holdings, hope that GLD will be a good hedge and counter balance my losses. I was planning on buying some ETFs for my IRA, and I will probably limit myself to a Bond Market ETF, and maybe an REIT EFT, but for this one I will wait for some better market valuation, there hasn’t been any meaningful correction in a while.

I do think that the defensive stocks will make a stand, you can bet Kellogg’s and Procter & Gamble will not be shaken. I also expect any company with a large winter sports apparel portfolio to do well, as snow fell generously on the Rockies, I bet skiers come out strong to enjoy the powder.