The stock market has felt a lot like the ocean tide the last year and a half. Rolls in. Rolls out. But it seems like nothing much is going on. Cash on the sidelines is doing about as well as a diversified index fund!
Sunday, May 15, 2016
The only chance at beating the market has been specific stock selection. Of course, that requires the selection of the best stocks, while avoiding the worst stocks. So if you're in Facebook and Amazon, that's great! Biotechs? Uh, the tide has been rolling out and out and out on many of those names.
With Sell in May here, I haven't allocated additional money to stocks, other than monthly allocations to an index fund in the retirement plan. (Dollar cost averaging). My big plan at this point is to wait until Sept/Oct before making stock picks. I would imagine summer will be a little soft in the market.
Although, the tide will continue to roll in and roll out. So if one can catch that...