Posted by lessarda on 12th of Aug 2011 at 07:05 pm
In terms of value and price, the great buy and sell points have
been more or less together throughout history. Charles Dow didn't
want to own stocks when index yields were under 3% and did want to
buy over with index yields over 6%. Looking at yields at major
market highs and lows shows the wisdom of such an approach (2009
would have had you cautious on this metric alone, but maybe it
wasn't a
majorlow).
If you're talking about defensive sector rotation from high beta
to healthcare, staples utilities, for instance, that tends to be a
leading indicator of when to sell everything and it started in
March/April this year.
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What if the answer isn't either / or?
Investment Question
Posted by lessarda on 12th of Aug 2011 at 07:05 pm
In terms of value and price, the great buy and sell points have been more or less together throughout history. Charles Dow didn't want to own stocks when index yields were under 3% and did want to buy over with index yields over 6%. Looking at yields at major market highs and lows shows the wisdom of such an approach (2009 would have had you cautious on this metric alone, but maybe it wasn't a majorlow).
If you're talking about defensive sector rotation from high beta to healthcare, staples utilities, for instance, that tends to be a leading indicator of when to sell everything and it started in March/April this year.