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Should Investors Re-Balance Their Portfolio?
Your financial advisor may be giving you bad advice. Do Not re-balance your portfolio.
http://www.bellaonline.com/articles/art49874.asp
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FINANCIAL MARKETS SUMMARY for WEEK ENDING JULY 18,2008
What an interesting week this was in the financial markets!
The US government curtailed speculation and short selling to a certain amount this week in financial stocks(banks,brokers,etc.). This brought about a huge short-covering rally in those stocks. This in turn helped push the US stock market averages to solid gains.
The gain in US stocks led to solid gains in most overeas stocks markets also.
Bonds however were hit hard and yields rose sharply.
It was interesting to note that the US government only went after some speculators. They paid no attention to the speculation and short sellers in the commodity markets, who after 3 months of trying, finally forced commodity markets sharply lower this week.
Investors should remember the following: When we are in a bull market, the corrections are short,sharp,and painful. When we are in a bear market, the rallies are short,sharp,and enticing.
Translation: Fade the moves that occured this week. If you still own financial stocks,sell them into the strength. If you were kicking yourself for missing the move in commodity stocks,now is your chance to buy them.
I hope to hear from you sometime soon,either in the forum or in response to this email message. I thrive on your feedback!
Tony Daltorio, Investing Editor
http://investing.bellaonline.com
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