Two magnificent winners of 2013, may have a hangover in 2014.
For the simple reason price has moved to extreme levels and valuations are stretched. Starbucks (SBUX) and Price Line (PCLN)have been great stocks to buy high and seller higher. But trends that go straight up do end.
We all know a correction of some degree is due, we may have to weight to April/May 2014, as this is the when seasonal cash is drained out of the system to pay taxes. Sell in May and go away has worked rather well over the years since 2009, and who is to say it wont work again.
Money Managers have had a great year, many stocks with green on the screen, and bonus will be handsome. Thank you Ben Bernanke, see you at the golf club!
Merry Xmas to all.
Chart showing Price Line, Starbucks and Dow Jones correction 1929 (for fun).
"It is impossible here to give an adequate idea of the Law of Vibration as I apply it to the markets. However, the lay man may be able to grasp some of the principles when I state that the Law of Vibration is the fundamental law upon which wireless telegraphy, wireless telephones and phonographs are based." ~ William D Gann
"The four most dangerous words in investing are 'This time it's different'." ~ John Templeton