It’s time to hit the road for the Memorial Day weekend.
Get out of town and get out of some of your stocks that are running out of legs.
The Standard & Poor’s closed above 1,900 the first time ever albeit on very light volume. This market does have legs left but could run out of wind at anytime. Low borrowing rates are empowering companies to borrow at record low rates. This leverage could be used to pay off higher rate debt, expand operations and compete for new business. Instead it is more commonly used for stock buybacks and acquisition of other business. Neither of these in anyway creates new revenue. I strongly believe that the market is winded and waiting for a signal that the race is over. It is possible we could hit new highs the next week or two and the question then becomes how much higher can the market go on this run and no one knows the answer for certain. If I am a trader I am holding for a strong sign to sell. If I am a long term investor I am looking to sell into strength during the next few months and accumulate some cash.
The only logical question then becomes “How deep the correction will be?” and I believe remains undetermined. Valuations are getting higher and the bond market will send a strong signal when it is time to run for the doors.
On a lighter note I just save a bunch of dough on my car insurance. Seriously. I saved a bunch of money (thank you Jesse) by calling an independent agent. If you haven’t check competitive pricing, you know the 15 minute or 7 minutes thing, it may be worth it. As a master of fact in my Get out of Debt NOW Quick Start program I outline 9 things you can do in less than 3 hours to help reduce monthly payments by up to $800. This one is an obvious no-brainer. I would suggest you call a good independent agent and let him comparison shop for you. It worked for me.
Drive safe and hopefully you will not have to use that auto policy you may be paying too much for. 