What will the market do? What should we do?
New record highs in both the Dow and the S&P Composite. And on the same day -- Thursday. What about tactics? I spoke to a very successful investor over the weekend. He's holding a large position in stocks which he bought near the 2009 lows. I asked him what he's going to do.
His answer, "Look, the Dow and the S&P have about doubled since the lows. When a stock or an index doubles in price, that's an extremely rare phenomenon. That goes for individual stocks as well. Most of the time when this rare situation occurs, it's wise to take some profits. Actually, many old-time traders will sell half of their holdings and play with the other half as if the remaining half was free.
OK, that's one tactic, and my friend is a very successful investor.
What's Richard Russell going to do? I ... Log in or subscribe to continue reading.
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