Don't get carried away

I would like to share this little snippet:

Extracted from an article by
by James B. Stewart
Wednesday, September 30, 2009

As I've said before, no rally goes on forever. The tide will turn, and when it does, I suspect the overvalued stocks will be the hardest to fall. That's why I'll continue to prune my exposure to the highest-flying stocks when and if we hit another selling threshold. Cash may seem dull today, but remember what it felt like just a year ago?

I think this makes sense. Don't you think so? The rally in global equities has astounded bulls and floored the bears. However, all things will end. It's a matter of when and not if.

I usually make it a point to buy only undervalued stocks and laggards. Will I be spared the carnage when the tide turns? I doubt it. Will have to stay vigilant.