Pro’s Are Turning Bullish On Investing In The Stock Market

I took some time today to watch financial television with the volume off. I normally keep the volume off and just watch the stock tickers as they run across the screen. I noticed that many financial experts are turning bullish on investing in the stock market. One expert is even forecasting that the S&P 500 will approach 3,000 by 2013.

This worries me. I prefer to invest in an asser when most money managers are pessimistic and business stations like CNBC are forecasting doom and gloom. That’s when you can find the best opportunities. The one asset class that most market experts are most excited about is gold.

Why I Would Sell Gold

Gold has been on an incredible run crossing over $1,400 an ounce. Many fund managers were able to make money investing in the hard asset over the past 24 months. I still attribute the huge run up in gold prices to fear. Gold is still too large a percentage of many investors and fund managers portfolios. Many of them abandoned equities over the past two years instead preferring to acquire precious metals like gold and other base metals.

If the economy is getting better, then investors will finally abandon gold and start investing in riskier assets.