Risk Returns – And So Does Fear

by The Investment U Research Team

We’re starting to see another emotion climb back into the market mentality in the past couple of days: Fear. After 30 days of positive movement in the S&P 500 (.INX) we’re starting to hear more trepidation and concern that this surge has gotten ahead of itself.

The VIX has been giving signals that September may turn ugly, and European markets stumbled at the prospects that the U.S. economy hasn’t entirely restarted.

After all, we’re already talking about a Goldman Sachs’ (NYSE: GS) Bubble

Early reports that futures and European stocks are moving down today may be overdone though. While the markets may be due for a pullback on fundamentals, this markets is still stretching a little based off market optimism.

We’re not going to see massive drops in the markets as we have in the past year. Quite simply, it’s because there are too many people still sitting on the sidelines. They will use these dips to move back into the markets, and blunt any large downward movements.

After missing the past 30% rise in the indices, they won’t want to miss out, and they will provide a cushion that we haven’t seen for a while as risk has returned.

Symbols mentioned in this article: .INX and GS.

• Look out Below and Overseas
• The CBOE Volatility Index (VIX): Using The Fear/Greed Index to Pinpoint Your Best Time to Profit
• Markets Keep Churning

Sign Up now and receive this Free report: Collect 122% in the Next 12 Months From Gold's Surge.

The Single Best Investment for 2009

Forget another stimulus package. Or retreating into "safe-havens" like cash and gold. All you need in 2009 is a small exposure to the "secret" White Cap Index.

It's up as much as 171% straight through Wall Street's meltdown. And one of the latest stocks to be added - an Internet-related venture capital company - is up over 100% since its inclusion into the Index.

Just weeks from now, we'll add another White Cap stock to this market-trouncing index. To get a sneak peek, click here for full details.

Comments

Check out our selection of daily Investment Research:

We Respect Your Privacy

---

What is Investment U?

Since 1999, Investment U has provided impartial, no-nonsense investment advice on how to build long-lasting wealth.

---

Recent Articles

Platinum Services

The Oxford Club is an exclusive, global network of investors, who collectively participate in the pursuit of prosperity and wealth. The Club is renowned for its market-beating, tried-and-true investment principles.

The White Cap Report exclusively identifies companies, White Caps, which - by being among the earliest to gain traction - have secured dominant positions within untapped, billion-dollar markets.

With an elite trading team at the helm, the Xcelerated Profits Report shows any investor how to "invest like a pro," using high-level, yet easy-to-execute strategies that "xcelerate" profits while minimizing risk.

---