This should be the new mantra for all investors: show me the money. In other words, companies can talk all they want about cutting costs or new products or turning the corner or slicing dividends. What investors need to see is profits. Until those start showing up, investors will mostly stay on the sidelines.

There's plenty of talk, very little proof, that stocks might be able to do better. We've seen a decent rally lately. There's piles of cash at venture firms or equity funds, just sitting, waiting to pounce on bargains. But until that money is put to work, it's all talk, no action. Until institutions start moving their money into this market by buying stocks or outright purchases of companies, many individual investors will be interested observers, not participants. They want to see money move from the bench into the game. Then they'll follow suit.

Continue reading Comfort Zone Investing: Show me the money!

Comfort Zone Investing: Show me the money! originally appeared on BloggingStocks on Sat, 21 Mar 2009 10:30:00 EST. Please see our terms for use of feeds.