We've Hit the Top - For Now

Wow - what a couple of days will do to a bull market!

It's been a while since I entered here - things just seemed to be staying the same, so I didn't feel I had much to say. But, now, like everyone else, these couple days have brought me out of my hole to make some comments about the market...and, while I'm at it, I'll update on how the AIM accounts are going.

The last couple of days has got almost everyone talking about the market - it's kind of funny - things have been so quiet over the past few months, because the market just seemed to keep trudging on, slowly upwards. And now, when something like the credit rating of the US gets dinged, it throws everything in an uproar (or, downroar, as it were!)

Now, this could be the beginning of a larger downtrend, or just a correction - I don't know, and no one else does either. All I know is our accounts are now 25% in cash (they should be 50%, but I'm still trying to catch up after the mistakes I made in 08-09.) My boys' mutual funds are at 50% - I didn't screw up their accounts. I still feel we've got enough cash to stay with the program and buy stock when the formula calls for it. We'll only run out of cash if something really disastrous happens in the market.

It's not like this came all of a sudden. I hadn't sold any stock since April, which indicates the markets had flattened out in the last few months. A lot of my friends were alerted this was coming - that's why we put some of our cash into silver ETFs and looking at gold.

By the way, if you are interested in hedging and investing in gold, here is a great way to do it, especially if you don't have much cash. You can earn points by becoming an affiliate with this company: American Gold Reserve. Just go to http://americangoldreserve.com and sign up, hit "Take the First Step," using scoop32 as the sponsor user name.

Didn't mean to get off track there, but I do believe people should have at least a part of their investments in gold or silver right now. Many of my friends, whom I trust, believe this is only the beginning. If it goes the way they're talking, even cash won't be a very good hedge.