The Dow Jones Industrial Average currently trades at 13,405, far below its high reached a few weeks ago, but also well above levels seen this time last year. The 
NASDAQ is in a similar situation, as is the S&P 500. So where do we go from here?
My personal opinion is that the short-term outlook at any time in the stock market is very difficult, if not impossible, to predict. The current short-term outlook is even more difficult than normal. Credit worries, profit taking from large gains, and seasonal slowdowns, are all major headwinds. The long-term outlook is a bit clearer in my opinion. Corporate profits continue to impress, balance sheets look very healthy, and stocks are not trading at particularly expensive levels. So what am I getting at here? I believe that now is a good time to have some cash on hand, and wait for further market swoons that are very likely in the next few weeks. Now is a good time to put together a list of quality stocks that you would like to purchase in the event of a quick and possibly dramatic market selloff.
There are certainly many different opinions on the short and long-term outlook of the U.S. stock market. There are those, such as Bill Fleckenstein at MSN Money, who believe the recent drop is just the beginning of a very long and substantial fall for the market. There are also those who believe this is a great time to load up on stocks, such as Price Headley. Which way do you think the market will go? Maybe you think I am way off base in my thinking that now is a good time to wait for the market to come in, then buy up quality names. One thing I know for sure, there are many different opinions on the market, and that makes for an interesting few months ahead.
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