For the first time in many months we’re doing some serious selling. Learning when to do some selling is essential for any socially responsible investor as many of our holdings have run quite far.
We’ve sold off all leveraged ETF holdings which were purchased this summer during the midst of the deflation debate.
We have also sold our shares of Dorman Products as the rise has become parabolic. Yesterdays decline was a tip that the momentum crowd has taken hold of the stock, so today’s sharp rebound in shares seems opportunistic.
Investor sentiment has simply gotten too extreme and I believe the upside is limited until we increase investor negativity. Earnings growth remains positive so this is not a call for a bear market or anything severe, its just a matter of investors getting too aggressive betting on the upside.
Brad
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