The Carnival of Personal Finance was hosted at Million Dollar Journey, so here we go with Smart Money Daily’s contractual obligation post of links to the best of this week’s carnival.
- I enjoyed this post: Technical Analysis: Three most important rules you must know. A brief summary of the thinking behind technical analysis of the stock market (don’t worry it’s not all graphs and wiggly lines).
- Even though I’m completely immune (being Canadian and all) I liked this post over at The Honest Dollar: 11 Ways to Trigger an IRS Audit. Good luck with that!
- Having my own investment account 100% in cash for the last couple months, I resonated with this interview with Jeremy Siegel about how current stock market conditions may setup “the buying opportunity of the decade”.
Siegel: Right now, I’ve turned cautious on the stock market. I think that there could be some more downward adjustment, until Bernanke makes a stand and the international community begins to say, “The U.S. is going to be fighting inflation.” We could see, short run, another 5% or even 10% decline in the market. I see a maximum 10% downside risk. If we should see that decline, I think that it could be the buying opportunity of the decade for investors — because long term, I’m bullish, and long term, I think that valuations still are very attractive.
Short term, still, it’s going to be a little bit rocky until the inflation situation gets clarified. Anyone that has their stock position long term, they’re going to be fine. If you have a little cash, you might decide to put some of that to work in the next couple of weeks. As stock prices decline, you might be getting some very good bargains.
Quote from Wharton School of Business.