Market direction for Sep 07

In TODAY's first page,

“The fact is, if every sub-prime mortgage that could possibly default defaulted, the most it could do is slow down US gross domestic product some,” he told the media on the sidelines of the Forbes Global CEO Conference here yesterday.

“The US economy may slow down, but so what? Because the US is the biggest economy, they tend to think that when the US gets a cold, the world is going to get pneumonia. This, today, is wrong,” said Mr Fisher, a long-running Forbes Magazine columnist with a reputation for accurately forecasting market trends such as the bursting of the dotcom bubble in March 2000.

I certainly hope this prediction would be correct. Financial market is just a place to test human's greed and fear. Very often fear is being spread fast and furious, people always think safety first, sell then talk.

However, the risk appetite is not going to return overnight. Still maintain the strategy of keeping some cash on hand. Maybe 60% stock 40% cash, buy on severe correction and sell on strength. When market is really picking up, then we can go back in to enjoy. For now, just sit tight.