NEW YORK (TheStreet) -- To be successful in the market, you need to hold both bullish and bearish positions. While the market does trend upward in the long-term, it is riddled with valleys. Holding only bullish positions means that you will not profit during these valleys.
The market is reaching new yearly highs. The Dow Jones Industrial Average has broken 17,000; the S&P 500 is nearly at 2000; and the Nasdaq is toying with its all-time high of 4572 made during the Great Speculation of the dot-com boom.
The market is booming, so now is the time to buy stocks, right?
While the average investor is irrationally buying stocks to ridiculously high valuations, the insightful investor should be hedging his/her portfolio with bearish positions in overvalued companies to prepare for a market correction.
Today I am shining the spotlight on Voxeljet AG (VJET), a 3D printer manufacturer headquartered in Friedberg, Germany.
Three dimensional printing has been all over the news lately. People are dreaming of an utopian society where everything is made at home from 3D printers.
Technology is not quite there yet.
3D printing technology was first introduced in the 1980s and resembled more of an assembly line rather than the printing process of today. Since then, every few years a 3D printing news story goes viral and people begin speculating on the technological potential. This speculation drives 3D printing stocks to ridiculous market valuations.