Reducing our Stock Investments

In November 2010, I stopped selling into the rally and began adding significant funds into stock investments. I continued to make large new stock purchases via managed accounts through January 2011.   I made some additional small purchases in April and May. 

With the recent market weakness, I am becoming concerned about a major correction.   To me, the market conditions feel like early 2008, when major issues, such the Bear Stearns and sub prime collapse, were being dismissed.  In 2008, I stayed in the market, expecting a soft landing. Boy, was I ever wrong and my savings and retirement accounts fell by 40%. 

I am not making the same mistake again.

This week, I will start reducing the amount of funds we have  invested in stocks. However, I won't completely cash out.   For now, my plan is to get our percentage invested in stocks back to pre November 2010 levels.

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This is not financial or investment advice. Please consult a professional advisor.

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