Overcoming Analysis Paralysis

Your thoughts on this market remind me of the famous Wall Street saying: “Now is always the most difficult time to invest.”

You hate stocks — but you’re all-in.

You’re skeptical of gold — but all your money is wrapped up in metals and miners.

You’re willing to ride this rally until it begins to fizzle — yet you’re on the sidelines with your cash, waiting for the other shoe to drop…

As expected, yesterday’s big investing question (What are you buying (or selling) right now?) generated an overwhelming response. And to say that you have some conflicting views on this market would be the understatement of the new century…

But that’s alright. In fact, a lot of very smart people don’t know what to do right now. If I picked 10 expert market analysts and locked them in a room, promising food and water once they reached a consensus on this market, they’d all be dead within a week…

Look, I understand why this market can paralyze even the clearest thinkers out there.

The trend is clearly higher… But stocks aren’t as cheap as many would like them to be.

Stocks are at a critical inflection point… But a debt crisis stateside and abroad could squash growth.

It’s also easy to paint stocks and Wall Street as the big villain right now. While the Dow has marched higher for four years, your wealth isn’t growing:

Median Household Income vs. the Dow

The market is far from perfect right now. But there is a simple solution that can lead you toward clearer thinking (and action over inaction): reduce you requirements.

If you are waiting for economic clarity, the end of geopolitical strife, stair-step growth and perfect valuations, you will wait for an eternity. And when it all lines up for you, the market will top out.

Today’s economic realities and the markets are not in lockstep. They never will be. You have to cut through the clutter and indecision by focusing on the big trends if you want to take action in this market.

Greg Guenthner
for The Daily Reckoning