Wednesday, January 25, 2017

Avoiding Exuberance

Dow crosses 20,000 for the first time - January 25, 2017.

It's easy to get caught up in the excitement when an index crosses a number milestone. It feels good to see stocks rise.  The market sentiment is positive.  Signs of a market advance abound.

For me, it's a good time to step back and wait.   That way I don't chase the stocks I'm trying to buy and then watch them fall back.

That's what I'm doing now.   I'm going to wait for the excitement to die down or for my potential stock buys to fall back to my target buy points.    With the market volatility, that may be as soon as tomorrow.

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

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

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