David Fabian | Oct 25, 2015 05:44AM ET
Investors that were fortunate to buy into the hole in either August or September have now been rewarded with a double digit gain on most broad-based indices. What began with some skepticism as just a short-covering binge has now morphed into the notion of a full blown recovery. There is even quite a bit of debate on whether or not we could take out the prior all-time highs on the S&P 500 Index before the year is out.
Of course, if you had the tenacity or good luck to buy the dip, you may question the risks of overstaying your welcome on the upside. Those that took a more active approach in loading up on stocks near the lows are likely just as leery of a blow off top that ends in a swift and pernicious drop.
Below are some bullet points that may provide a road map to making this difficult decision a little easier to digest.
The Bottom Line
There is always an opportunity cost when you make a change to your portfolio that your intended actions lead to more harm than good. Nevertheless, with a well-thought out game plan and sound portfolio management principles, you can enhance the odds of a favorable outcome.
Disclosure: FMD Capital Management, its executives, and/or its clients may hold positions in the ETFs, mutual funds or any investment asset mentioned in this article. The commentary does not constitute individualized investment advice. The opinions offered herein are not personalized recommendations to buy, sell or hold securities.
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