STI 3150 - Time to take profits.
Its almost the end of the month and guess it's due for another blog post. Unfortunately with the STI trading at above 3150 points which is just 10% from its last peak, not much value has presented itself.
A lot of stocks have performed very well in this period, as have many that I have discussed.
This is a common occurence when markets are good. Most stocks will go up, as positive sentiment sets in and often earnings will be improving as well.
However, we should not forget that markets can turn, and sometimes very quickly and very sharply. There is nothing we can do to predict this event. But history tells us that this can and will happen at some point in time.
STI has risen by 10% from 2800 level. With this in mind, it is probably time to take some money off the table. Thankfully with recent big rises in stocks, have been able to pare down some positions and build up the cash position further.
When every one is happily buying and buying, its time to be selling and selling. Once the party is over and every one is selling and selling, that's the time to be buying and buying. That's when you will need your cash position.
Goodnight and feel free to drop a comment. Hope to see you guys at STI 2800 again!