Wednesday, September 16, 2009

Plenty of Momentum Left

After what I'd call "churning" over the past week or so, the market has shown strength and has moved another leg higher. I still get a divided feeling out there. Many are still bearish due to macro events and extended valuations. Others are going with the flow and making money while its there to be made. And still others believe a full on bull market has taken off and this is just the start of it. I'm somewhere between group 1 and 2. I've held stocks and picked at a few positions, and haven't yet been selling into this strength (though I've been considering it). At the same time, I haven't added significant positions I plan to hold for an extended period of time. I'm definitely starting to subscribe to the "buy and sell" philosophy or active value investing. In other words I'm targeting specific stocks that are undervalued relative to the market, and selling them when I see a nice appreciation. I'm not falling in love with any positions.

I don't want to spend too much time on strategy, because I'd rather be talking about stocks. It will happen soon, I hope.


Rachelle said...

I am planning on getting into value investing mainly because my tax rate is low now and this is a great market to take advantage of that factor in my situation.

There a couple of positions I'm considering, but I'd have to work up the courage to sell out of the positions that I've been planning on keeping fro 3+years. (A Die Hard subscriber to the Buffet Method).

Good luck with you stock picks and I'll be coming back to read more.

Michael said...

You are definitely ahead of the curve. Its the right market to pick off some deals in stocks that the market chooses to overlook. Buffett has said again recently that its a good time to buy stocks if you're going to hold them awhile. I tend to agree. While the economy is still likely to be weak, there are some good opportunities to make money in stocks.

Thanks for the comment, and feel free to comment or email again!