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Growth Investor
Helping Investors Build Wealth Since 1970

Sensing the Top?

The overall bull market is still healthy, with the major trends of the indexes pointed up. However, we’ve seen more and more wear and tear under the market’s hood in recent weeks, especially among growth stocks, which are chopping all over the place after big runs this summer and early fall. Because of the action, we’ve pared back some, and now hold 36% in cash. That said, we’re also giving our winners a chance to calm down and resume their uptrends. Simply put, having taken a couple of steps back, it’s best to now take our cue from the market—renewed strength among growth stocks will have us buying, but further weakness could have us raising even more cash.