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If you’re a traditional Monmouth County, New Jersey stock investor, you might follow conventional wisdom such as the 60/40 stock investing rule.

You might have most of your money in mutual funds.

And you might think it’s downright bull hockey to prune your stocks during bullish sentiment.

But before you get defensive, hear me – and Warren Buffett – out. (If you want to help save your retirement, that is.)

 

bullish sentiment

Don’t Be Afraid of the Big, Bad Bull  

Bulls are some of nature’s most unpredictably dangerous creatures. But I’m not asking you to ride a real one, only to use bullish sentiment as an opportunity to prune and plant.

What do I mean by pruning and planting?

When sentiment becomes too bullish, it’s a good idea to prune the weaker stocks in your portfolio. When sentiment becomes bearish and fearful, that’s when you should plant your money.

 

Keeping Tabs on Bulls and Bears 

The Sage of Omaha has been advising stock investors for decades to “be greedy when others are fearful and fearful when others are greedy.” And a bull market is when your fellow investors are at their greediest.

By keeping track of bearish and bullish sentiment, you could be able to turn Warren Buffett’s billion-dollar advice into a more comfortable retirement for you and your loved ones.

But first, you need a reliable way to keep track of stock market sentiment itself.

For stock investors who work in New York City, identifying the current sentiment could be as simple as reading the NYSE ticker on their lunch break.

But for stock investors based in Red Bank, New Jersey; Middletown, New Jersey; and elsewhere in Monmouth County, New Jersey, keeping track of stock market sentiment might not be as easy.

Regardless where you live, always follow reputable financial sources such as the Wall Street Journal. And sign up today to receive helpful emails from me!

Do you feel confident using bearish and bullish sentiment to your advantage? I use a special tactical allocation model to help my clients save for retirement – regardless of market sentiment. Don’t forget, I’m always available at david@www.valuealigned.com or 732-800-2375 to help you achieve the retirement you deserve.

Image Credit: gmaikell | morguefile