For those with a somewhat balanced portfolio (a modicum of equities as well as fixed-income), one might suggest a full-throated "thank you very much" to this year's stock market run-up. When one considers the fragility of the World economies, anything over 10% year-to-date is truly amazing, and Mr Market is still well north of that. Recall, for example, last year, with major gyrations, only to end flat.
Is it time to say "thank you very much" and lighten up on equities? I would say (a full-throated) "Yes".
While this smacks of market-timing (which is true), it also smacks of reality. Stuff goes up, stuff goes down. It was not that long ago that Mr Market was in the absolute toilet (March, 2009, anyone?). How many of today's "perma-bulls" were so confident back then? And how many, secretly, said "if it ever gets back to where it was, I'm bailing."
Well, it's back, and are you bailing? The answer, regrettably, is "no." Greed seems to trump wisdom.
I, for one, am taking this opportunity to sell equities into a relatively strong market. I might miss the top, but I guaranty you I won't sell at the bottom. As weak as a 2% yield appears on fixed-income these days, it's a whole lot better than having green fade to red in equities. And don't get me started on bond funds. Thanks to Ken, those 2% CDs are out there.
Just my $.02