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Monday, July 26, 2010

10 stock market myths

Read this article.

My view
I usually advise people to invest in the stock market at regular intervals, using dollar cost averaging and avoid timing the market.

I wish to make an exception here. The outlook for the global economy is not good with too many unresolved issues - low interest rate, bubble in asset prices, government deficits, trade imbalances. It may be better to hold cash (even though interest rate is almost nil) and wait for a big market correction. If that happens, you must have the courage to move in.

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