Friday, February 18, 2011

When to Buy

As a sub-advisor for the Union Securities Hybrid Investment Program there is always pressure to remain almost fully invested in spite of the worries of over-extended stock markets. I have learned from experience that bull markets always run higher and longer than expected and bear markets seem to operate the same way on the downside.

As the bull matures the only strategy I can employ is to remain long by gradually redirecting profits back to the market laggards. At this time in the long cycle I favour the technology complex and so I have to look under rocks for over-looked stocks in the information technology space. Currently Research In Motion RIMM is a good candidate – note the higher low posted during the earnings torpedoes of 2010 and note the pending intermediate cycle buy signal – Yahoo! YHOO has the same pattern.

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