Which Way the Market?

The best idea for investors is to buy low and sell high. Right? Turns out the answer depends on what kind of high we’re seeing.

By doing a bit of research of his own, the New York Times’ James B. Stewart, who writes the Common Sense column for Saturday editions, discovered selling high is clearly the better idea when faced with a milestone high.

“I wondered,” he writes, “what would have happened to investors who bought stocks in the past only after stock indexes hit new highs?”

Today, in his Sunday New York Times’ Strategies column, Jeff Sommer makes a case that supports Stewart’s view: “Forecast for a 20,000 Dow Still Holds.”

Powerful stuff. Worthy of our notice and consideration.