EC The Risks Of Selling The Rally

Investors that were fortunate to buy into the hole in either August or September have now been rewarded with a double digit gain on most broad-based indices. What began with some skepticism as just a short-covering binge has now morphed into the notion of a full blown recovery. There is even quite a bit of debate on whether or not we could take out the prior all-time highs on the S&P 500 Index (SPY) before the year is out.

Of course, if you had the tenacity or good luck to buy the dip, you may question the risks of overstaying your welcome on the upside. Those that took a more active approach in loading up on stocks near the lows are likely just as leery of a blow off top that ends in a swift and pernicious drop.

Below are some bullet points that may provide a road map to making this difficult decision a little easier to digest.

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Author: Travis Esquivel

Travis Esquivel is an engineer, passionate soccer player and full-time dad. He enjoys writing about innovation and technology from time to time.

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