Today started out with markets up substantially as Ben Bernanke signaled he would keep on stimulating the economy. But markets cooled significantly in the afternoon after Fed meeting minutes revealed some Fed members want start to phase down the stimulous.
Toll Brothers had excellent earnings and got as high as $39.25. It closed at $37.07 up 2.9%. I took the opportunity to sell about 16% of my Toll Brothers at $38.56.
I don’t pay too much attention to the market trends (I focus on individual stocks and valuation). But it does seem like we have had a very good run here. It may not be a bad idea to trim some positions. We should always be comfortable with the fact that markets can and do drop. The trick is to be confident in what you hold when markets decline and to be ready to take advantage of bargains even as the crowd runs scared.