I for one believe the market is peaking. I am not yet getting out, but buying more dividend stocks like AT&T, JNJ, TRP and then index funds both domestic and international, small cap value and total stock market. If you look at the market PE and the recent volatility IMHO it's time to back off some. I never get totally out, just move to a more conservative position.
AT&T at $32.20 has a yield over 6% and a PE under 7 while the market PE is up around 30 with a yield under 2%. And the recent court ruling allowing the Time Warner purchase along with Direct TV gives them an upside potential of around $40 a share. I think they will flounder around this price for a few months but then move up while the rest of the market continues to flounder. I am a buyer under $32.25 and a seller over $40 of this stock.
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Life is to short to drink cheap wine.
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