I have to admit it feels a little strange to root for a down market as that scenario sets up the best income investments. I like to buy when others are fearfully selling and sell when others are greedily buying. In other words, I won't enter a new income position when the market is overbought as better opportunities present themselves when the market is oversold.
From a macro view I have to question the herds exuberance. There is going to be new Italian leadership. Since when has any government effectively solved economic problems? Insofar as new leadership I always think The Who had it right with their line: Meet the new boss, Same as the old boss.
We live in a time of great debt, money printing, currency debasement and in my view the end of economic growth. Bottom line: the sheet is going to hit the fan and when it does I want to have lots of cash and what investments I do have are going to be on Dividend Champions and precious metals. Even then I plan to write calls in the money and sell puts out of the money so that when things drop I have a lowered cost basis and increased yields.
In the meantime it looks like this gal will just have to be patient and wait for the herd's exuberance and economic reality to realign. In other words, be afraid...be very afraid.
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