Wednesday, March 06, 2013

Waiting for a Pullback

"Buy low and sell high." ~ Wall Street adage

Even with the Dow achieving new highs, I don't feel particularly confident about the uptrend given all the negative events that can potentially happen.   I am resisting buying into this rally, i.e. to buy high and sell higher.   Mostly, I am selling into the rally and taking profits on positions that I purchased over the last year.   Occasionally, I am buying stocks that have pulled back already despite the rally.   Overall, I'm waiting for the inevitable pullback that has taken place in the spring in every year since 2009.

Given the sequestration, China slowdown, and European sovereign debt issues, something is likely to trigger a market decline.  I'll be ready to make some stock purchases when that happens.

For more on  The Practice of Personal Finance, check back every Wednesday for a new segment.

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

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