It feels like this happened before. It feels like this happened
before.
Look out, folks...The market’s booming and it seems like the
party will never end. Not even Apple’s 15% plunge could derail this gravy
train.
But as we rocket ever closer to all-time highs, it’s important
to pump the brakes and glance in the rear view mirror.
When things seem too good to be true, it’s usually time to sell. And
vice-versa.
It was just 17 months
ago that I urged people to start buying stocks because sentiment had turned so
negative. Since then, the S&P 500 has returned over 27%.
Of course, trying to guess short-term market direction is a fool’s game. No
one except Ms. Cleo can predict the future. But time and time again, having the
guts to zig while everyone else zags pays off.
I’m not saying sell everything--this rally may have steam left--but it makes sense to trim
back some of your high-flyers and reinvest the cash in more defensive, dividend-payers.
Or for bolder, bearish investors, take that money and invest in TZA
(Direxion Daily Small Cap Bear 3x Shares), a hyper-aggressive, leveraged ETF
that can deliver big returns quickly if the market moves down.
Note: TZA should only be used in the short-term and with “play”
money.
