Thursday, 7 February 2013

Asia Trip Warning

Historically my trips to Asia have coincided with collapses in the US stock market...

I'm leaving tomorrow so watch out!

This is your last warning.

Joking all aside, the market has gotten pretty high pretty fast and lots of indicators (both technical and non-technical) signals that market is peaking.  Recent retail investor cash inflows into equities, high insider selling, etc all signal possible market tops.

While typically in my experience, this happens a few weeks to a couple months before the actual corrections occur, it is a sign to be wary.  Personally I've started to pare back some of my more risky/volatile holdings and using options to hedge one way or another.

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