Time for Investors to Wait and Watch


Jim Jubak Image Jim Jubak Founder and Editor, JubakPicks.com

Don't feel motivated to do any buying or selling? Join the club. But while conditions are less than tantalizing, focus on pruning your portfolio and preparing for new stocks.

Many investors figure the smartest thing they can do now is nothing.

They've raised the cash they needed to raise, and they don't feel compelled to sell anything in a hurry. And they certainly don't feel a rush to buy anything.

Yep, doing nothing strikes many folks as the right thing to do.

I mostly agree.

The Jubak's Picks portfolio is about 35% in cash. As I wrote last week, I'm waiting for a buying opportunity in China (see this blog post), but that's not likely to occur until July or later. The US market is outperforming most of the world's markets, but that's not exactly a ringing endorsement.

Until the growth picture for the US economy gets a lot clearer—you did see the disappointing June 4 jobs number for May, right?—I don't feel a need to add to my US growth stock core in Jubak's Picks. The euro debt crisis will end someday, but someday looks like a way down the road. And now we've got a political crisis in Japan that may or may not be resolved by July's elections.

Nope, I'm not looking to make much in the way of buys or sells.