Don’t be afraid to sit on your money

The market for most stocks right now is flat (and some are moving down). Except for a few stocks, it really doesn't make sense to have your hard earned money invested. Depending on your favorite indicator, most are showing the good companies to be in an over-bought condition. This condition is likely to continue through the week (or longer).

It doesn't help that the US market is trying to figure out what ObamaCare is going to do to individual companies. Some will win and some will lose on ObamaCare - the challenge is to figure out what is going on.  That consternation is likely adding to the current flat market in most stocks.

Don't be afraid to take a short-term break from a position. You don't lose money in this environment by watching from the sidelines as a stock retreats a bit from its latest highs. The best thing about a downward move is that it gives you a better price when the stock starts to move up.

It is the nature of mankind to want to spend money that is sitting around. Be patient. Let your investment capital earn money market rates and then you will be in a position to take advantage of a move up when the time is right.

There are a few stocks that are still showing some price growth but it is likely that if you are not currently invested in those companies then you may be too late.  To get a good idea of the stocks that I am invested in, the Watch List to the right are the companies that I currently think are worthy of my money. However, with the current bears running all over the place, I am not holding significant shares in some of them - I am taking my own advice and waiting for them to start moving up.

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