Update 11:30 am eastern. I decided to also sell 20% of my Toll Brothers. Toll should do well certainly as a company, but I worry about its high P/E ratio and I have had a nice gain already. I always find that once I get in selling mode it’s a bit hard to stop.
The market rally is surprisingly strong this morning on positive news out of the summit of Europena leaders. Hopefully it continues, but often these relief rallies have been very short lived.
I decided to modestly reduce my holding in Wal-Mart and Wells Fargo this morning. I very much like both companies. But it is prudent that I raise a bit of cash in case of a market down-turn and also because there are always better opportunities to be found. And if I find some I will need cash to invest.
I’ll probably leave the proceeds in U.S. dollars, though it will be tempting to transfer some money to Canadian dollars especially if the Canadian dollar falls more (today it is up strongly).