Topic: How To Invest

What is Pat’s commentary for the week of November 29, 2016

Article Excerpt

Dear Inner Circle member, Some investors today feel highly uncertain about the stock market outlook, mostly because of the surprise results of the recent U.S. Presidential election. A handful feel tempted to “go into cash,” as the saying goes—that is, sell some or all of their stocks, and hold the proceeds in cash until the uncertainty subsides and the outlook is clearer. However, going into cash in reaction to uncertainty is rarely a good idea. By the time the uncertainty subsides, stock prices may have gone a lot higher. My view is that you should only go into cash when you can’t find any stocks that look attractive enough to buy. It’s a particularly bad idea right now in my view, but I understand its appeal. After all, uncertainty creates stress, and going into cash can relieve stress. You might even get lucky—prices may fall after you sell, and you may manage to buy back in at a lower price. But in the…