Bystandards’ Syndrome

Ron & Olaf,

I am regular reader of your blog and I really enjoy it. Unfortunately, I didn’t listen to your advice and missed the majority of this bull market. Is it too late to jump in?

This is one of the commonest questions we have received in the last few weeks. Our short answer: it is not too late!

However, there are a few things that must be taken into consideration. 

  1. It has been nearly four years since this bull market started and it is no longer considered a young bull.
  2. The markets are technically strong but short-term overbought.  
  3. The bull market’s advanced stage, coupled with significant gains, requires investors to keep a close eye on any changes in the health of the current up-trend.
  4. Investors can no longer afford a wide-net buying strategy. The leadership is most likely to change and eventually lean toward late-stage sectors.
  5. Energy and Consumer Discretionary stocks should lead the advance, later joined by Material stocks, including still struggling Golds.
  6. Even in the right sectors, investors must look for the right (technically strong) stocks.
  7. Tight reversal levels must be applied to all positions.

In sum, despite the fact that this bull market has been with us for the last four years there are still many buying opportunities that could produce significant gains.

We have recently added a number of names to our “Open Positions” list that should participate in this bull market. For more info please visit www.na-marketletter.com.

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