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Dow record not necessarily a buy signal

This article was posted on Mar 10, 2013 and is filed under Market News

he Dow’s run to record highs in the stock market’s rally this year may not mean it’s time for investors to go on a buying spree.

Instead, many financial advisers are telling clients to go easy, whether they’re just getting back into stocks or seeking to add to equity positions.

Questions over how much higher the market can go have kept caution in play, with some technical indicators suggesting the market is overbought.

But the case for investing in stocks is strong, they said, particularly given signs of more strength in the economy, especially yesterday’s jobs report, which showed a much higher-than-expected 236,000 workers added to the payrolls in February.

“We’re telling clients to take a more defensive approach to the market right now,” said Frank Fantozzi, chief executive of Planned Financial Services, an independent wealth manager in Cleveland. Yet stocks remain a better choice than other asset classes, he said.

source:
Business-Standard

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