Wednesday, November 15, 2006
Reduce Stock Market Exposure
The Yield curve inversion happen in Jan-Mar 2006 and Jun-Nov 2006. Of the past 50 years, there were only 10 inversion including this time. 7 of them turned out to be recession within 2 years. This indicates that we are near a major peak.
I am planning a retreat, reduce my exposure to less than 50% and enjoy the low exposure until Apr 07. (Oct and Apr are most dangerous periods as that's accounting period for funds, they may sell poor performing items and post lost to their book to cut the tax)
I am planning a retreat, reduce my exposure to less than 50% and enjoy the low exposure until Apr 07. (Oct and Apr are most dangerous periods as that's accounting period for funds, they may sell poor performing items and post lost to their book to cut the tax)