Taking Profits

I've not been keenly following the market during the current bull run because I think that this is a classic bear market rally. The economic slowdown is decelerating but I believe we are still not out of the woods.

High unemployment and falling house prices means that we still have some way to go before the situation improves. For these reasons, I believe the stock market way over bought and ready for a pull back.

This past week I sold almost everything that I bought in the last few months for a tidy profit and I will just wait for the pull back, re-enter the market and then ride it up again.

We may never re-test the March lows and it is possible that the market will continue to appreciate but it never hurts to pocket the profits. I'm still holding onto commodities and emerging markets as I have more faith in these markets.