RE:RE:RE:From the Globe : The '' overdue correction'' is nearing ! bossu wrote: Today's market action is a ''mere''view of what you may expect !
Are you not seeing that investors are beginning to have more than 60 % cash...
Have fun !
A lot of investors having large cash positions is actually bullish (not bearish), as it means there's a lot of money to be invested in the market. For a correction to be imminent would generally mean that investors are fully invested, with very little cash to be injected in the market.
In an inflationnary environment, being cash is the worst position as the inflation means the value of assets increase (more money for the same assets base = faster increase in the value of assets). In this environment, stocks that are assets heavy, or assets where spending can be recovered completely (so inflation shielded) should see their value increase, not decrease.
Now, obviously, when there's a correction, all stocks temporarily move down regardless of whether they are overvalued or undervalued. Looking back at history though, steady investors have generally beat out those that "wait" for corrections, so it's not an easy game to play.