Dow closes at record high … time to buy? … or time to sell? + Captain Rick’s Investment 101

Posted: March 5, 2013 in Dow Jones, Investment 101, Stock & Bond Market
Tags: , , , ,

Captain Rick: The Dow Jones closed today at 14253.77, a new record…topping the previous high close of 14164.53 on October 9, 2007…just prior to the market crash, followed by the Great Recession.

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Captain Rick’s Investment 101

As a successful investor, I can not stress enough the importance of the old investment cliché: “buy low, sell high”. It has worked with excellence for me. Intelligent investors bought during the steep dive you see at the left of the chart, while most sold out of fear (it was scary, but smart)…and then began to sell and reap excellent rewards during the uphill recovery on the right (it was a ‘chicken move’, but smart).

If you have a significant amount of money invested in a 401K, other program or directly in stocks and bonds, I highly recommend you begin to transfer some of those funds to a safe prime money market fund. Your investment won’t make money, but it will be safe from loss when the market crashes again…and it will. Its just a matter of time. With the U.S. economy stalled with zero real job growth and the U.S. GDP approaching negative “recession” territory, this is time to sell…not buy!

I extend this word of investment caution to everyone around the world. We all live in a global economy. I hope all of my friends around the world are paying attention to my blog posts which keep all aware of the very serious elements unfolding upon our world.

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Comments
  1. atridim says:

    The Dow went on to reach a new high of 15539 on 3/14/13. I have used this time to sell lots of $$$ of mutual funds that were at record highs that I bought when the market tanked during the Great Recession. Those were scary purchases, but well calculated. I have a plan that is working great. Every time I make a sale, the next sale must be for a higher profit. I have worked my most aggressive mutual fund to 61% profit. The next sale must be 62%. If the market keeps going up, my next sale is just around the corner. If the market tanks…well I will made lots of profit on my sells.
    The problem with many people today is that they are too greedy. When the market goes up, they hold out for broke…like they are playing the slots in Vegas…and that’s what they do…they go broke. Not me. I have learned when to ‘hold them’ and when to ‘fold them’. I am folding them in an orderly manner. You should too. Currently the Dow is sputtering back down around 14400.
    Captain Rick

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