Sunday, October 30, 2011

Time for Increased Caution About Stocks

Stock prices have had an amazing recovery since the worries and depressed prices only several weeks ago.  The S & P 500, e.g., is headed for its biggest monthly gain since 1974.  In just the last 18 trading days, the index has rebounded 18% since its recent low on October 4.  It's time to take some profits.

As I scan the prices of individual stocks that I've been tracking, some have surged 25-40% in just a few weeks.  I suggest continuing to research stocks and to set target purchase prices and wait to see what the market brings.  If prices continue to rise, enjoy the gains in existing holdings and continue to take some money out to keep cash available for future buying opportunities.

Steve Lehman

S & P 500:  1285 

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