However, we do know that so-called ‘smart money’ corporate insiders and many of the big-name institutional managers have been selling and warning of risk being as high as at previous market tops. But they began doing so more than a year ago, and have been wrong so far.
Yet that is their typical pattern, to be early, wrong for the short-term, but very successful over the long-term.
One has to wonder, with risk so typical of previous market tops, if the historical pattern for public investors is setting up again, or will they do a better job of getting out on time this time.
One thing we do know is that it’s more important to have the discipline or a strategy to sell near tops. Doing so, even if some money is left on the table, pretty much takes care of the problem of being depressed and fearful at market bottoms. Having taken profits near a top, avoiding the losses others experience in bear markets, does wonders for having the cash and confidence to re-enter at the lows.
This article is brought to you courtesy of Sy Harding From The Street Smart Report.