Stock trading volume

During the world cup, I noted that stock trading volume hit a year low of 1 Billion. If this situation persists for the rest of the year after the world cup fever, we must be prepared for a second economy dip. This is a sure sign of smart money withdrawing from the market. Without smart money interest, the market is likely to fall when bad news hit again. I read in a book that predicted the economy is likely to dip again from last year 2009 to this year. The question is when? So far, the prediction in the book is unerringly right. It is scary to know someone can predict the economy with such accuracy.

My gut feel is as long as we hold good stocks with low PE ratio, high cash per share, low or zero debt and good prospects, we are likely to be delighted with our investment in the next 3 to 5 years. It is time to ignore the noise in the market and reinvest our funds into good stocks when the market falls again.