As the old expression goes, the market climbs a wall of worry: when a significant number of investors are anxious yet stocks rise higher, nervous investors who had kept cash on the sidelines due to myriad concerns capitulate and start buying. That extends the bull market. The greatest risk to a bull market is not a time of serious concerns, but the opposite: a seemingly sunny scenario in which investors can bask, Pollyannishly, and become too bullish. If everyone's in the market, stock prices usually get inflated. The next direction for the overall market may be down.
I'm not suggesting we're at that point. But with stocks at record highs despite continued global challenges, it's a good time to take a deep breath, assess the composition and risk level of your portfolio, and think about shifting out of winners that may have run their course toward less glamorous, safer holdings -- preferably ones that pay above-average income to boost returns if the stock market pauses: International Paper (NYSE:IP) and Pfizer (PFE).
Source: Seeking Alpha
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Posted by D4L | Monday, August 08, 2016 | ArticleLinks | 0 comments »________________________________________________________________
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