Bear with us as we use YET another sports analogy to make our point. Gardening, literature, traffic, bird watching analogies all take a backseat to sports analogies here at Fagan Associates.
As Mets’ fans, we watch games and wonder how the Mets are going to lose and how they are going to make it as miserable and excruciatingly painful as possible! Yankee fans watch and think- “9th inning, its time for some heroics” and boom, another A bomb from A rod and they come back and beat the Red Sox.
Surprisingly, markets have some of that optimism/pessimism built into late day activities. It seems that the last 1/2 hour of the trading day really shows market sentiment and direction. Thats why yesterday’s return from the dead rally (we were down 180+ points intra day) was particularly encouraging.
Try to not get caught up in the hoopla of daily market swings. A little caution is in order but too much caution may leave you lacking returns later this year. A little more cash, a little higher dividend or a little conservative bond fund makes sense. Everything in moderation - especially given the market’s strenghth over the trailing 12 months.
Market Sentiment
Tuesday, May 18th, 2010
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Please note that all data is for general information purposes only and not meant as specific recommendations. The opinions of the authors are not a recommendation to buy or sell the stock, bond market or any security contained therein. Securities contain risks and fluctuations in principal will occur. Research any investment thoroughly prior to committing money or consult with your financial advisor. Please note that Fagan Associates, Inc or related persons buy or sell for itself securities that it also recommends to clients. Consult with your financial advisor prior to making any changes to your portfolio.
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