Reply #78: No. [View All]

[JoePhilly]

If you re-examine the market from 2000-2006 ... it stays in a range of about 10k to 12k. The spike occurs quickly and goes to 13k and then 14k in 07. If you were SMART, you took some GAINS in the 13k range because it had to come back down.

When it did fall, it fell due to FEAR ... 13k, 12k, 11k, 10k, 9k, 8k, in a few months. But that is the market, people jump in during a bubble, and run screaming if it falls. Unless you are in for the long haul.

Where is the DOW now ... 11,200 or so ... WOW ... right back in the same running average from 2000-2006. Both the SPIKE and the COLLAPSE were irrational and based on nothing.

When the DOW hit 8k, I increased my investment in it ... and when it hit 10.5k in Jan 2009 and again recently, I took some gains. If the DOW continues to go up ... say more than 4% in under 6 months, take gains and lock them in. If the DOW drops to under 10,500 you should consider adding more.

Pay attention to the running averages. Set some threshold on both ends, and you'll be fine.

But ... the world is not coming to an end.