Hold Stocks?   Time to Sell?

By Shlomo Maital

stock market crash


There are a thousand good reasons why I never give advice on the stock market, and why, if I did, you should ignore it.  I myself hold no shares at all, in anything. 

   But here are some facts worth pondering.  Thanks to New York Times journalist Gretchen Morgenson for her insights.  Note that the NASDAQ exchange is reaching new record highs.

    “This is the third longest bull market in 80 years, and we are starting to see some deterioration develop.” (a money manager Morgenson quotes).

   “We are at an inflection point.”  (co-chief investment officer).

  “Many investors may be quick to sell their shares in a swoon, amplifying a downturn… [especially] investors who have bought shares on margin, using borrowed money, and those who have been pushed into the market in search of returns because of low interest rates.”  (Note: The bull market is fueled almost exclusively by the latter two groups).

    “Money borrowed to buy stocks tends to be nervous money.”

   “The Federal Reserve will always be there to save the day”.  This is a wrong assumption.

   “Apple shares have lost 11.3 per cent despite the fact that earnings per share were up 45 per cent over last year”. 

    Morgenson counsels, “It’s probably not a bad idea to be watchful for [distinct market shifts]…”.    I agree.   Be careful!