These minor dips with buying opportunities will end soon, when its that easy to predict, there is problems. They so want this market above 12k.....I wouldnt mind going long but not up here I think there is too much risk. I think a pullback below 11750 would be a good place to go long.
I came close to buying a few hundred shares of QLD at 83 but thought no way!!! And of course its now trading higher....
The main problem i see with this market (and my opinion does not count for much) is how optomistic people are. It is clearly over bought and a correction is going to come sometime in the near future.
I think it's you who seemingly is having trouble understanding. Let's go a bit S L O W E R ... the US savings rate is negative because consumers are spending all their wages and dipping into savings. Do you advocate they get more credit cards to max out so they can pay off the lower percentage cards they've already maxed out? Inflation over the past 90+ years is around 3.4% on average annually. So the CD @ 5.6% will outpace inflation at today's CD rates. And the net yield for the "average" non-saving consumer will exceed the 3.75% you cited. Avg. inflation over past 5 years is 2.76%. And no ... "fixing" the APY on savings vs. inflation won't solve the problem. US consumers by and large want everything today ... they buy what they want .. whether they need it or not and whether they have the money or not. And maybe you'll be a Wal-Mart "greeter" in your old age if you've not saved any $$$ for retirement. Go see what the average 50 year old has in retirement savings. It's nothing ... This isn't rocket science ...
I have to give Mav credit for one thing that seems forgotten a bit on this thread. We are traders, not investors. Investors can afford to be contrarian. Countertrending traders generally can't stay solvent long enough to prove themselves right. Trying to predict a market drop over the next week using market fundamentals is nonsense.
note: intel just reported and pulled one of these.... edit: after-hours suckers gaping the price for tomorrow's open have caused me to find another way to express what I see: