Monday, April 08, 2013

Still Waiting for a Correction

"The market will move in a direction that inflicts the most pain." ~ Wall Street adage

It seems the market is at an inflection point between greed and fear.  There is not the irrational exuberance seen at previous market tops, nor is there a large amount of caution seen at previous market bottoms.  A sharp movement either direction will cause pain, although I suspect an upward move will cause more pain since there is still a lot of money on the sidelines or invested in fixed income.

For now I plan to wait of the inevitable correction happens to the stock market.   When that happens, I will be looking to buy in two sectors: financials and biotechs.   In the meantime, I'm still selling stocks to reduce my risk exposure.  Other than a slight bit of seller's remorse, I am still OK with continuing with this strategy.

For more on Strategies and Plans, check back every Monday for a new segment.

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

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