Volatility and market dips are back. Will the market continue lower? No one knows that for sure, but you can say the market is "relatively" high.
I wrote about getting your portfolio in check several months back. Like everyone else, I don't have a crystal ball, but you have to be aware that the market is on the high side. That said, you should make sure that:
1) You have a margin of safety. Is your cost basis much less than the current market price? While there is never a fool proof solution to protecting your portfolio, that margin of safety is important when things start moving South.
2) Do your holdings' fundamentals support the current prices? Often in robust markets, investors (really they are speculators) use the market to judge the value of securities. Security's values should be a function of the underlying company's financial position. You need to know the fundamentals of your securities and the economics of their business.
3) If you are "riding the wave" of securities prices without fundamental values, those securities could represent Achilles heals. On the way up is when to prepare for the storm. In Florida, you want to have all your ducks in a row, before the storm hits. Not after.
Stay safe and keep calm!
