STI has rallied and so have other markets. In fact, UK has rallied impressively with gains in both the stock market and the GBP.
I sold some LYG as it went up to lock in some profit. At the same time, I used that money to accumulate more Vodafone to go together with my recent purchases of British Telecomms.
As mentioned in the earlier post, when the market is bad, no point going defensive since defensive stocks won't benefit that much from a strong rally. But once the rally is underway, buying defensive stocks may be better than trying to chase the top gainers.
A strong rally is actually a good opportunity to stop buying equities and to rebalance by purchasing some bonds or simply rebuilding your reserves.
No comments:
Post a Comment