It is a debate that many investors are struggling with today. Stocks continue to set new highs following a relentless bull market over the last five years. As a result, many investors understandably want to continue to own stocks to participate in further gains. Some of these investors are also becoming increasingly concerned about owning stocks at this late stage of the market cycle, however, particularly since much of the advance to date has occurred despite a sputtering post crisis economy and corporate revenue and earnings growth that has effectively stalled over the last two years. And with the long anticipated economic recovery in 2014 that helped justify the lusty stock market gains in 2013 failing to materialize and the U.S. Federal Reserve remaining steadfast in their plan to wind down its QE3 stimulus program, it is reasonable for investors to wonder whether the next new high in stocks may end up being the last for years to come. So what is an investor to do? Sell now and miss the next leg higher in stocks? Or continue to hold as the market peaks and plunges into the next bear market? For those that are risk prudent, a select group of stocks have demonstrated the propensity to not only participate to the upside along with the broader market in the late stages of past bull markets, but perhaps more importantly have also shown the ability to continue posting gains long after the next bear market for the broader market is well underway.
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