The Stock Market Doesn't Like Uncertainties

3 Major Road Blocks to higher closing in global stock markets:

1) US President's intention to control Wall Street and remove life support for banks
2) Undecided decision for US Fed Chairman Ben Bernake to 2nd Term
3) China's Government to Limit Loan Facility

Fund managers don't like uncertainties. Retail investors don't know about this pitfall. If you look at charts throughout global stock makets for the past 2 weeks, whenever the headline from one of the 3 items appeared, the global stock maket dropped.

US consumer's confidence index is up for the 3rd straight month. Japan and Korea should be smiling after a week's drop. They export a lots of electronics gadgets to the US.

As long as these uncertainties haunt the stock market, the rebound will be limited. Item#2 from above will be resolved this week. Item #1 & #3 will linger around for quite some time. Item#2 will be replaced with refreshed fear of rate hike by US Fed.

Good Time to buy? Yes but buy a little bit at a time and don't get loan to buy as you may need to keep those stocks for a while.
Reason? No systemic problem with the US economy. But watch out for Dubai and Greece. Chinese government should be competent enough to prevent the building asset bubble.
Stocks to watch:
ETI TECH (good deal, Dubai's loss is your gain, stock at great discount price)
All the REITs (paying out good dividends, stable during correction, defensive)
Stocks to avoid:
Those with chart of reverse 'V'