Sell In May And Go Away

The U.S. stock markets well, since the lows made in March. However, it looks like it was a short-term event. During the football season is still months away, it's time to bring the defense.

The Federal Reserve has signaled that they are ready to cut their prices for the moment. Without additional liquidity provided by the Fed, the markets on the economy are the focus. Unfortunately, the focus is on high oil prices, high food prices, and in the fear > Inflation.

The financial media, turning its focus on inflation and second guess the movement of the Fed.
Confirmation of a recession in the U.S. economy has not been made. While the economy is close to stalled, it has not yet come to a standstill. Does this mean that the U.S. Fed lowered rates too much and create inflation? Probably not. But with a slow summer season for the media, the financial press should come to the opinion that the Fed has cut too much and has created a> Inflation monster.

Investors have been on higher food prices as a confirmation of inflation. The reality is, higher food prices have come from the increasing use of bio-fuels. I guess that the high oil and food prices start to come down after the Olympics is. China's economy is in full swing right now. After the Olympics, I think we will see, the Chinese government has tightened up their rates to slow its economy to a normal growth level. Thisshould reduce the demand for oil.

For now investors should be on the defensive for the summer. The use of inverse funds is a beautiful vehicle, in which a portfolio. This allows an investor to the current downtrend in the market to participate - and enjoy the summer.