You got to know when to hold ‘em
Know when to fold them
Know when to walk away- Kenny Rogers, The Gambler

It was a year that came in like a bear and went out like a bull. All told, that left us with a surprisingly strong bull year. When the days were darkest, we think investors panicked and sold when assets were the cheapest, best buys we will see for a very long time. How else can we explain investors dumping GE stock for less than $6 a share? Oh, but that was months ago and memories are short. We now have investors willing to drop their money on assets that look very risky to us. What will 2010 bring us? We think it will most likely bring us some more big ups and downs on the roller coaster.

Is it time to hold ‘em or fold’em? As an intelligent gambler, that should depend on what you are holding. It is, in our opinion, no time to bluff when you don’t have much in your hand. Look to take some profits in areas like high yield bonds and stocks with little or no earnings. If you are holding some aces, we would stick with them for now. Keep your eye on the game however. If is turns against you once more, don’t be afraid to fold ‘em and live to fight another day.

It was a terrific year which did much to restore account values. However, it appears unrealistic that this bull run can go on too much longer. As we move from underpriced back to overpriced, the odds start to stack up against us in the short run. Be careful and thankful as we welcome in a new year!