Author: Lelio Vrancovich
Covestor model: Technical ETFs
As the markets continue to move higher, a growing number of voices fret about an impending correction. I wonder if these are the same people that just three months ago were advising the general public to sell stocks and move into cash – right at the near term bottom.
The bottom line is that as of early February we have increasing numbers of stocks reaching 52 week highs and a decreasing number of 52 week lows. For as long as that scenario continues to be true, I believe it makes no sense to be overly concerned about a pullback. We expect there will be a correction at some point, but my guess is that buying that correction will be the right move as opposed to selling it.
As far as the portfolio is concerned, we will continue to hold our current positions up until conditions change.
