My thought for the day... First of all, let me say that I really love my job. I wouldnt change places with anyone and I thank my lucky stars to be in this position. Everyday I am able to evaluate the investment landscape and plan strategy for the months ahead. I take in all of the news and read as much as I possibly can every day and night. So for the past few days, all of the headline news has been about record closing highs and the Dow Jones Industrial Average flirting with a 17,000 close. What worries me is that there was an academic type person on TV this morning talking about the possibilty of Dow 20,000 by year end. My experience says that if experts start talking about how great the market is on TV, its time to go the other way. I obviously dont know if the market is going to move higher or lower, but I am able to decide if I want to play offense or defense with my investment strategy. For the past five years or so, Ive had the offensive team on the field, and now I want to shift strategy and become more defensive. I think it is prudent to take a portion of the investment portfolio away from risk assets and reposition to something safe and out of harms way. I sold a few stocks earlier in the week and I sold a bit more today. And I will sell a few more if, and when, the market takes out 17,000 (which I believe will happen). I would much rather be a buyer when there is invesment unhappiness and when doom and gloom abounds. Im also worried about September. Historically, this has been the worst month of the year, and the market has often made a low in September to later rally strong starting in November through January. So its only July, but we all know how fast the time will fly. Best performing stock today was WebMD, up $2.21 or 4.43%. No report tomorrow, so Happy 4th of July to all and Im thankful to be an American.
Posted on: Wed, 02 Jul 2014 21:14:09 +0000
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