Asset Class Moves February 12, 2013

Stocks were up 0.16%
Bonds were up 0.02%
US Dollar was down -0.31% versus a basket of world currencies, and down -0.40% versus the Euro.
Asian and European stocks were up.
Gold was up 0.14%
Oil was up 0.45%

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Commentary:

Today I started placing 60-day SELL LIMIT orders on individual stocks I own, placing the orders about 7% higher than each stock’s 2 year high price.

A reason I did this is: I don’t think the general stock market will go up another 7% without contracting sometime thereafter.

So, if one of my individual stocks exceeds that general market expectation, then hopefully I may achieve a sale price that allows me to realize a good gain, and also create cash to buy stocks back if they decline thereafter.

S&P 500 5 year chart Feb 2013

Additionally, as shown in the chart above, for whatever incidental, cyclical, or coincidental reasons, US stocks have slid in value around April and May the last 3 years.  I don’t know why that has occurred.  But again this year, compared to stocks’ long term moving average price (shown below), stocks are increasing rapidly in the first quarter of the year, and they may see some abatement of that rate of appreciation in the Spring.

S&P 500 5 year chart 200 day moving average Feb 2013This is all speculation and should not be relied upon.  Having said that, fast rates of appreciation don’t generally continue unabated.  They tend to pullback from time to time.

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Disclaimer: These posts are not written by a professional or licensed financial advisor. There’s nothing for sale here. This is just a discussion forum. No one should make any decisions based on representations made on this informal blog. These posts are just one layperson’s opinions, concerns, and observations about asset classes – a part of larger, never-ending discussions. Any significant financial decisions should be discussed with at least a few trusted and experienced financial advisors before acting.

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