The Trending Temptation: Why Exposure Levels Can Be a Double Edged Sword The latest guidance from Investor's Business Daily recommends increasing stock market exposure to 60 80% in response to the Nasdaq composite's recent breakout above its 50 day moving average.
However, this advice warrants closer examination of the context behind these recommendations.
Trends are inherently cyclical, and while some trends can persist for extended periods, there is a risk of getting caught up in chasing after them.