It bears remembering that the stock market is forward looking (about 6 months), so if you expect interest rate hikes in the later half of half of 2010, keep a close eye on the exit door when summer comes around.

The key is not to be overexposed to the stock market and stay nimble as the opportunities that present themselves may not follow traditional recovery patterns. Stocks could be depressed further or languish for years, so if you see the need to take profits off the table, then just do it.

Since the last week of June, the stock market has whipsawed in a tight range. Gone is the hot-headed exuberance but neither has a drastic correction materialize. Some bulls are still holding the fort amid a thin market volume, but deciphering market sentiment is difficult as false signals can be easily generated by a few market participants.

I won’t be looking at stocks for a while. Inaction is a decision too when it comes to safe investing. Of course, you can always add to your portoflio if you are a long-term investor. For the time being, I am keen to accumulate gold. We may still be in a deflationary environment but the impending inflation from all the printed money is no laughing matter.

More on this topic (What's this?) Read more on Gold, Inflation at Wikinvest

Time flies when we are having fun… we are now into the 13th week of a stock market rally that started in March. The embers of the stock market rally has not flickered out entirely but there are signs of investors taking some profits off the table.

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