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Stocks at Risk on 5th Anniversary of Highs

All of these issues, the negative divergences among the major averages, and the overhead risky levels from my proprietary analytics justify my investment advice to book profits, take some money off the table and have an asset allocation in the stock market down to at least 50%.

I have made several "market-timing" calls at market extremes since this century began. Back in March 2000, I recommended that investors reduce exposure to the Nasdaq by 50% saying that gains above 5000 would not be sustained. Then in the second half of 2002 my call was to re-invest in the stock market.

In the second half of 2007 my advice was to book profits and raise cash just as I do in today's analysis. As March 2009 began I made the call that stocks were ripe for a 40% to 50% upside move.



This article is commentary by an independent contributor, separate from TheStreet's regular news coverage.

Richard Suttmeier has an engineering degree from Georgia Tech and a master of science from Brooklyn Poly. He began his career in the financial services industry in 1972 trading U.S. Treasury securities in the primary dealer community. In 1981 he formed the Government Bond Department at LF Rothschild and helped establish that firm as a primary dealer in 1986. Richard began writing market research in 1984 and held positions as market strategist at firms such as Smith Barney, William R Hough, Joseph Stevens, and Rightside Advisors. He joined www.ValuEngine.com in 2008 producing newsletters covering the U.S. capital markets, and a universe of more than 7,000 stocks. Richard employs a "buy and trade" investment strategy and can be reached at RSuttmeier@Gmail.com.
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