2009 has been the craziest market to work in. On the surface the S&P 500 was up 1%, but at the lows in March the market was down 26% and everyone braced for a move lower. At the lows, it was not a time to take risk, but in retrospect that was the best time to get into the riskiest stocks.
First the left-for-dead penny stocks like Bank of America (BAC) gained exponentially. Then after the market started climbing the hot-growth stocks like Baidu.com (BIDU) and Apple (AAPL) took off. I made a mistake getting into safe stocks.
In retrospect, in January 2008 I should have went on an 18-month vacation and held what we had. In next month’s newsletter I will run a “what if” scenario to see where we would be had we just held. For the remainder of 2009 I will try to get into the hot stocks on dips.
This market is not on sale anymore, and we can’t get all excited and buy a stock that’s already tripled.
