Bull run … period!

To quote Jessie Livermore: “In a bull market, it’s the sitting that counts”.

I received a lot of emails from my readers asking when to sell their stocks since most of their portfolios are sitting on hefty profits. Under current market conditions, patience is definitely a virtue. You rather be “long” than out of “stocks”. There is no argument that we are in a bull run. So don’t be left behind and go for the big gains. Forget about trading the spreads. My belief is stocks will continue to trend higher with all the elements of a major run-up coming into fore. My near term target of 2,725 is a given.

What is interesting is that local money continues to pour into the market. This is the missing link in the earlier run-ups. Note that the rise of the PSEi (PSE – 2,561) from 1,100 in 2003 to its current levels was driven mainly by foreign funds. During that period, we saw index heavyweights such as PLDT (TEL – P2,225), Petron (PCOR – P4.10) and Ayala Land –(ALI – P14.0) rose by at least 300%. Local money plus foreign buying is a potent mix in driving a bull run.

To read more about Jessie Livermore, please go to http://www.marketthoughts.com/jesse_livermore.html