In The Lonely Bull

So, what is it; buy or sell? 

Two different answers are possible depending upon the time frame.  Near-term, the end of the year is influenced by tax selling.  Many investors find it advantageous to sell holdings in which they have losses to offset gains they may have.  This puts additional pressure on some stocks or bonds, but may enhance their long-term value.  After the turn of the calendar, these depressed securities often bounce back and may then begin to perform based on their long-term prospects.

As far as the market is concerned, true investors should always take a longer view to assess the potential of any business. 

Today the market is not cheap anymore, it is fully valued.  This does not mean a correction is in the offing, but it does not offer the measure of safety as when stocks are cheap.  Of course, the market is made up of many industries and companies.  Some may be very highly valued, while others are in the dog house.  Our job is to sort among all the potential investments to create a portfolio that performs well, but avoids the potential for big losses.  Stay steady, my friends.

The Lonely Bull

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