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Sunday, June 16, 2013

Switching to Gold

Things have gone pretty crazy, my schedule is seriously unforgiving.

But let's cut to the chase, because this is supposed to be an update. So, an update it will be.

My overview on the market has turned, well, let's just say that it  isn't as bullish as before. 

I personally feel that people have overvalued the market at this time, so I have sold of all my shares for a $6000 profit and have moved into another type of investment.

In other words, my aggressive value/growth strategy has been completely ditched. I have moved into a used-to-be bubble, the commodity of gold.

I have moved into a somewhat conservative outlook in the recent days. Half of my portfolio has been diverted to gold. The other half will remain as cash.

With the market soaring right now, many would say, "Why Kevin, the DOW has been making all time highs! Why would you suddenly turn bearish when there is nothing wrong?"

But that is just it. From past studies that I have "conducted" on my own I have come to the realization that the market is a cycle. There is no unstoppable period of buying, people will buy, then people will sell.

That may still yet not be a plausible excuse for why I have completely sold everything, which was a mistake of mine.

I should have sold in increments. (Buying and selling in increments is a must for most portfolios), it's just that my portfolio isn't very large so I can't necessarily do that as the commissions would add up.

Because of course, the stock prices may most likely still be skyrocketing up. There is no perfect method to time the market.

I still believe that the market may still move up, but there is no telling. The recent performance of the DOW has also been not so stellar, also.

So that's whats been going on recently. I have also begun reading "The Intelligent Investor".


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