As I've posted last week I've sold the vast majority of my 6 month dollar cost averaging portfolio. The economic environment is too shaky for my taste. I'm willing to risk losing potential return since the risk I consider is a quick drop back to March 2009 levels. Assuming jobs won't improve any time soon I find it hard to see how governments will sustain growth through government spending alone. With each passing day risk of stagflation grows higher. Macroeconomic indicators aren't really proving any strong indication of the future.
The Stock market seems pretty relaxed, though. VIX volatility is down and things are calm. This may be attributable to the 2009 year end.
I'm on the sidelines waiting for a good opportunity to jump back in, slowly (Starting dollar cost averaging on a monthly basis all over again).
Interesting articles from leading economic and business magazines:
Stemming the tide @ The Economist – Concerns about Unprecedented levels of government debt (similar to those I expressed a week ago).
Managing A Portfolio With Hedgeable.com @ NY Times – A valuable portfolio management tool reviewed by the NY Times.
Money Issues That Can Test Even a Rock-Solid Marriage @ NY Times
Great personal finance posts from the past week's carnivals:
The Carnival of Personal Finance was hosted by M is for Money. Here are my favorite posts:
- 10 Things Your Baby Doesn’t Need that Can Fund Their College Education @ Fiscal Geek – Seems like many parents are frustrated with people trying to capitalize on their parenting instinct.
- How Our Consumer Debt Problems Got Out of Control @ The Digerati Life – A quick recap of the consumption craze.
The Carnival of Money Stories was hosted by Out of Debt Again. These posts caught my eye:
- Buying an Engagement Ring @ Dual Income No Kids Finance – Great story.
- Why Do People Pay More Money for the Top of the Line Model? Incremental Value Analysis @ Darwin's Finance – Interesting analysis of the premium paid on top of the line models vs. the incremental utility.
More from fellow personal finance bloggers:
Do Emerging Market Funds Belong In Your Portfolio? @ Amateur Asset Allocator – My answer would be – yes. How big an exposure would be the more difficult question. A good spotlight on the role of emerging market funds in your portfolio.
Sell Your Used Textbooks and Old Books Online @ Money Blue Book – Great guide on making some extra money on old textbooks and books.
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