"If it's too good to be true, then it probably is." ~ old saying
Like many others, I hope this rally continues and reaches the highs of 2007 by year end. Ah... if investing were only that easy:-) However, I really don't believe that's going to happen. Instead, I think the current market rally is going to stall soon, providing another buying opportunity for the eventual next bull market. Why? Because I don't think there has been enough improvement since October, 2008 to warrant sustained confidence in the economy... yet. Here's why I think the current market rally is of the bear market kind:
At this point, I continue to stay invested, although I am trimming some positions as the market rises. I am selling profitable positions in our trading account, and selling when our managed accounts gain 5%. For now, I don't have enough conviction to get out of the market completely. However, I do plan to reinvest funds when the correction does occur.
Disclosure: At time of publication, I own the Ultrashort Proshares Financial ETF.
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This is not financial or investment advice. Please consult a professional advisor.
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