JT, your 20 years of investing is more than my 13 years. It is interesting to note that you and I were there in the crash of '87. I think we realize that we are entrenched in a mania (for at least 2-3 years?! and the crest is approaching). I have learned a lot in the past year and am amazed that there is so much to learn. In the era of the empowered investor / speculator, the rules change.
Yes, I have been taking profits all along the ride over the last year. I've noticed that stocks have gone up much further after I have sold them. From overvalued to extremely overvalued (ie. bought OONE at .35 - .75, sold all at about $2.25 in January, now it is $13!). Guess I've learned to always have a core holding.
While the markets are hot, I am tempted to milk it, while realizing that we are in a mania. Still, the market will need to form a "top" before we have the drop. Fortunately we've seen only quick corrections and no topping yet.
Most of my holdings are relatively cheap compared to the marekt. Yes, I've had to buy stocks with no earnings, a change in my investment style to match the current market environment. As for TOM, I had bought some on the way down in December and have sold some on the way up, not that I beleive it is fully valued, but my concern for market risk.
Preservation of capital is key and in this mania, one needs to step back. If we're all doing so well (ie. CDNX doubles in 3 months!), pinch yourself to see if it's a dream, then sell some shares.
Hopefully we're ready for a market selloff or another year of market mania.
Good Luck!
Ciao |
