What do we know for certain at this moment in time:
- The trend is up
- The longer a trend goes on, the closer it is to reversing
- We have no idea when that reversal may take place
What the above means, in terms of actionable information, is the following:
- You should own stocks, since the trend is up
- You should have an exit plan because the trend will eventually change
- Let your exit plan take you out of your positions, not emotion.
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