PM, cont'd

Into the strength on Friday we cut back on two of the biggest winners in portfolios that had large overweightings in these stocks. Happily, they have gone even higher. Of course we want to max out on returns but part of good portfolio mgmt is to notice overweightings and pare back when the "gettin's good". Its alway better to be on the outside wishing you were in than on the inside wishing you were out. And besides, we still have big positions in these names to begin with. If the market tacks on a few more % points, we will lighten on other overweights and outperformers - while the "gettin's good"!
I would expect the S&P to make it to the old highs on this move - 1553.10 to be exact - and that's only 4.5%. That would call for a new reassessment as some backing and filling should occur at those levels +/-. My take is that the market is looking past the economic weakness that everyone is talking about. As long as the soft landing continues, so will prices. But good portfolio mgmt is never wrong!