The right question to ask right now is "when is the bull market going to change into a bear market". Knowing the right answer for this question will make you very profitable or at least it will make you avoid losses. The global GDP´s growth has been slowing down the last 5 years. China´s growth is slowing down. The Eurozone´s debt is increasing year after year. Now take a look at the government debt to GDP charts below.
Chinese government debt/ GDP
EU government debt / GDP
US government debt/ GDP
Everyone understands these graphs can´t keep rising forever...
Eurozone Debt to GDP %
After Greece comes Italy and then Portugal. Will the same thing that happened to Greece happen to those two last mentioned. Will the Euro last as a common currency? I would say there is a lot of tension in the air right now and no reason to buy stocks that are following the general market cycle. Stockpicking can still be profitable but I think the time of easy profits and bull market rallies is over.
This is no investment advice, it is just my opinion. Give it a thought.
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