China, Europe and the Fed…what a wild combination! That is what it may take for this stock market to convincingly break above S&P 1700. If China recovers and goes back on the path to higher GDP growth and Europe gets its act together with less austerity, our easy-money Federal Reserve will provide the spark to move this rally higher. If not, look out below!
Complacency can kill any portfolio. Very few people who are active short-term traders succeed while most long-term investors who persist through tough markets can succeed. The key is to be an “attentive investor” and not an “active trader.” Pay attention to long-term scenarios as they evolve. And be prepared to adjust your asset allocation as market circumstances may require. Stay attentive!