Monday, May 30, 2011

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.

For more on Strategies and Plans, check back every Monday for a new segment.
This is not financial or investment advice. Please consult a professional advisor.

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