Rally to fizzle and out?
January 5, 2009
STI continues its rally today. I’ve starting taking profit instead of adding to any of the positions, even clearing some slow movers at breakeven instead of holding out. My main concern? – The rally is going to fizzle out soon.
The fear is that the rally isn’t going at a slow and steady pace, but rather at a breakneck sort of speed, with some of the bluechip counters breaking through previous highs. While some may take this as a new upstart, I have my concerns rooted in the fundamentals of the economy. And while stats points to the equities market usually leading the economy by 4-5 months, the economy is NOT set to recover till end of the year at the least, with analysts calling for a even worse meltdown in 2010.
So on the safe side, it’s good to rake in the cash and go back to the observatory tower again.
