2013 is the election year. You only get this once every 4-5 years. It’s special.
Historically, election means uncertainty to the market. It has proven time & time again that most financial market will go into a sell down until after the election is over and the new government is up and kicking. Everybody knows this fact.
When everybody is following the same game plan (being defensive and wait till the GE announcement), the market will sell down prematurely thus creating an undervalued market. Volume is thinning and only those constitutional players and big funds are playing the market, taking up undervalued stocks. It’s a golden opportunity for them.
When the waiting game spans for too long, retailers are getting more anxious. Some stocks jumping to new highs making them uneasy with their money in hand. They say it’s THAT last election push that is happening, but they were proven wrong time and time again. Those who are in the know will always profit from this opportunity of quietness as they always do during other times.
At this stage, it’s just better to lay back as you have already missed the boat. After all, the risk is getting higher the closer to the mandatory date of the parliament to be dissolved dateline. It’s better not to gain thus preserving your capital than to lose a lot when you are trapped entering the market at the wrong time.
So the big question now, what is the best stock to pick when THE dreaded moment has been announced?