I can safely say that, from my 35 years in the financial markets, to be consistently successful at investing, one must put prudence over popularity.
Human nature as it is, investors often find it difficult to take unpopular actions. My motivation in writing this column is to nudge you to take five unpopular, but prudent, actions today.
But before I do that, let’s look at two charts and understand the concept of “over-owned.”
Two charts
The charts compare five currently over-owned stocks in five sectors of the S&P 500 Index SPX, The first is a daily chart of the period since Donald Trump’s election. The second is a monthly chart since the start of the current bull market.
The popular stocks that will help you understand the actions described below are Martin Marietta MLM, Pfizer PFE, General Mills GIS, Duke Energy Corp. DUK, and Nvidia NVDA. These stocks are compared with the S&P 500 ETF SPY, in the charts. If you are uninitiated in inter-market analysis, these charts may at first seem intimidating. I suggest you look at them for a few minutes, and you will see several insights jumping out at you…Read more at MarketWatch
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