The market's on a tear. The smart guys are on the sidelines, but I'm in it. I'm a genius. Me and Cramer. I've got 75% of my assets in these five stocks: GOOG, COP, OIH, C and ATPG, and they're all up big. But there's a reckoning coming. QE will cease someday. Maybe in June. Everybody knows about it. Shall I get out in May? Sell everything, hunker down, wait?
But what if GOOG is still below $700? Oil not at $110 yet.... C under $6.... ATPG under $25? Why sell anything? If the correction is 10%, I could at best catch only 5% of it. Is it worth it to chase the correction and end up on the sidelines when the market burps and keeps going? I ask myself.
Maybe I should eschew market calls altogether, keep these stocks forever, sell a few shares when I need a little walking around money. Things look like hell now, but they are getting better. Remember the words of that stock market sage, Steve Miller: Time keeps on slipping... into the future! And the past: this is 1995, when the market gained 35% and then kept on doing it for the next five years.
Trade, or hold forever. Which to do?
To me, the choice is not just a financial decision. It's which way will be more fun.