With the stock market up big since the Presidential election, many stocks are too high to buy. In fact, pension funds, mutual funds, hedge funds and even individuals have near record exposure to stocks with very little in cash. I feel there is a stock market correction ahead as it would take more money to push the market higher.
As a portfolio manager, I look for stocks with upside to their Fair Values, thus I keep a list of stocks I would like to buy if I could get a better price. Or in this case if you feel a correction coming it could prove wise to hold off on making new buys, hoping to get better prices in the event of a stock market correction.
Although I see a correction on the horizon, I don’t think it will be a big one. All the economic figures that I see point to a strong economy, and with oil prices declining, a recession doesn’t seem likely.
Here’s the top ten stocks I would like to buy if the prices were right.
