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The Masked Tulip

After Staying In May, Will Investors Bail In June?

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http://www.marketwatch.com/story/after-sta...rs-bail-in-june

Besides slower summer months, which tend to leave the market without a clear direction, a rising concern at the end of May has been a drop in the dollar. There are associated concerns that key commercial interest rates, such as mortgage rates, are on the rise and risk derailing an economic recovery.

According to Mendelsohn, the market has mistakenly read a recent rally in commodities as signs that the economy is on the mend. "I think it's just a sign that the dollar is about to dive," he said.

A weaker U.S. currency tends to lift dollar-denominated commodities, such as crude oil and gold, as it makes them cheaper for holders of other currencies.

Concerns that the Federal Reserve is printing too much money have pressured the dollar and are also raising concerns among major holders of U.S.-dollar denominated debt, such as China, according to Mendelsohn.

Three or four shares I was considering buying back in Feb/March have gone up 500 or 600 percent! Drat - at the time I was convinced that we still had another leg down, still am, but it would have been nice to get in on this one briefly.

"I'm showing the market extremely overbought," Mendelsohn added.

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Three or four shares I was considering buying back in Feb/March have gone up 500 or 600 percent! Drat - at the time I was convinced that we still had another leg down, still am, but it would have been nice to get in on this one briefly.

I read somewhere that there's a saying, "Sell in May and go away". Apparently June - Sept is historically a time when shares fall in price.

Anyway this week I sold 50% of the shares that I've purchased over the past few months to take some profit (on average 50% profit .. why anyone would want to make a highly risky leveraged investment in a single asset class, i.e. houses, is beyond me??). If stocks continue to rise I'm still invested in the market... if they drop I can buy more shares.

TMT I would wait a couple of months, you might get another opportunity to buy in the Autumn.

edit: typo

Edited by ReggiePerrin

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TMT I would wait a couple of months, you might get another opportunity to buy in the Autumn.

That is the plan. I opened the pages of one financial paper today and they were ramping the very same tech stocks I put in my list a few months ago. I would be a wealthier person now if I had jumped in in Feb. Oh well, I still think a drop down is coming so will jump in next time.

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