Use this rally to take profits

Posted by admin on March 17, 2009

Sorry I have been gone for a few days, but I had some PC issues last week and have finally been able to get the issues worked out.

I hope everyone has been enjoying seeing their 401K and investments come back in the last week.  Please use this opportunity to adjust your portfolio a little bit.  Right now we have had a 15% rally off of the bottom in one week and we are closing in on the 800 level of the S&P 500 that I mentioned in

.

The 50 day moving average is looking like resistance also and it is sitting at around 800 also.  Right now I have used this opportunity to take about 5% out of stocks and split it between cash and an intermediate bond fund.  I believe bonds offer a better investment right now than stocks because at least from an investor perspective I am more protected in the event of bankruptcy.

If you have stocks someplace besides your 401K and do not want to sell them I would look at purchasing the SDS exchange traded fund to hedge some of your long positions you are holding.

I am trying to put some more posts together as I get some more time.  Remember please protect your assets and put new money into stable assets or bonds until the price action and the economic numbers show that the economy is in better shape.

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