Investing Wisely -- Update with Recommendations and Personalized Follow-Up

By: Steve Bauer | Sun, Feb 27, 2011
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Update & Recommendations:

In my previous Update, a couple of weeks ago, I suggested that the - September to date rally is exhausted, and you should either be in cash or on your way to cash. By now you should be quite tired of hearing that from me. Unfortunately, not much has changed, including my opinion, except time.

I continue to be a strong Bear and there are many confirming factors that tangible support this thinking / recommendation.

The imminent General Market Bearish Inflection Point I have been forecasting continues to be delayed, but stay tuned it will happen!

I have said for weeks -- the General Market is "breaking down" but the Indices are not offering much if any evidence of that taking place. I have cited the "breadth" and expressed more recently that qualitatively the number of stocks that have turned down is increasing daily.

I have been a financial analyst for over five decades, and perhaps I am getting old, but I do not recall a time than required so much patience and discipline. I preach these two words rather frequently to others and have more recently preached them to myself.

This past week offered much hope that we are nearing the end of the September rally. It has been in place for nearly six months and that is "rare." The dip in November was a very good Bearish Inflection Point, but it did not hold. There are many reasons but the fact is we must now wait for a second bearish inflection point.

I have more recently been writing articles on valuation. To write one article required grinding through many valuations. This is my normal routine anyhow, but this process provides great insight into that state of the marketplace. It does not look good!

The general market is currently over-valued, over-bought and is showing signs of deteriorations, especially in the area of breadth. Interest rates are on the rise, and inflation is already a serious problem. This means that you must consider holding cash or perhaps taking bearish positions.

I hope you maintaining your necessary - patience and discipline. Few will be able to make it through this "rare" time period in the history of the stock market. I also hope you are following my - Personal / Private Blog. It is boring but accurate!

Something to Ponder:

Is CASH an alternative to owning securities?

The answer is YES! Few financial analysis, asset managers, ever consider using cash and that is because they are paid by their employer to - stay invested.

And that is why most investors and nearly all traders lose money!

If you would like to have further information on my work / analytics or perhaps my professional asset management, mentoring or consulting - services ...

I would appreciate your sharing just a bit about yourself and your investment objectives,

Just send me an Email, and I will respond promptly.

Thank you for your time in reading my "stuff" and continued interest in my work / analytics.

Smile, have Fun - "Investing Wisely",



Steve Bauer

Author: Steve Bauer

Steven H. Bauer, Ph.D.

Steve Bauer

Steve has several degrees, i.e. post graduate degrees and doctorate and a great deal of (too much) continued education. For seven years, he did a stent as a University Professor of Finance and Economics.

Dr. Bauer also writes for His articles can be viewed at:

He owned a privately held asset management firm and managed individual investor and corporate accounts as a Registered Investment Advisor - for over 40 years.

Professionally he is a financial analyst and private asset manager / consultant / mentor.

Steve can be reached at

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