Wednesday, March 21, 2007

Surf's up!

Hopefully you managed to buy into a stock fund or two when the S&P 500 was down around 1380. Today the market is up over 3% from that point, and leveraged funds that move twice as fast as the market are up more than 6%.

I put 25% of my savings into leveraged funds when the S&P was near 1380, and now I'm thinking about when to sell. I'll probably start cashing out above 1450.

There's no guarantee that the market will go up more this week; it could plummet back below 1400 tomorrow for all we know. So now is probably not a good time to put more money into stocks. Always buy low and sell high, and wait for the right price to occur before doing either. Patience pays off in the stock market.

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