The stock market went into a correction yesterday. Good. Things were getting too easy, we needed to take a break and wash out the weak investors.
Some of these stock charts are at parabolic levels. Up, up and more up. That smells fishy to me. Markets go up and down. Now the market’s poiting down — which is healthy in the long run. We ran too-far too-fast in the first quarter and stocks needed a break.
Investors Business Daily confirmed the market went into a correction yesterday in today’s paper. But you could really feel it with stocks down big yesterday for no-real reason.
What will I do? I sold some stuff last week and built up a little cash. I might take profits in stocks with 35 or 40 P/Es. I don’t think I’ll make any drastic changes to portfolios. I want certain stocks fall so I can buy in at better levels.
