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Three Stocks Out and Two Stocks In

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This is why we roll our eyes when we hear or see “news” alerts about the Dow Jones industrial average being down by “triple-digits.” While a 100-point move may sound big, it’s less than a one percentage point change. Reacting to every headline and alert is not only senseless but will also rack up large amounts of trading and tax costs. While a disciplined strategy may stumble from time to time, the long-term returns from sticking with a good strategy will be far higher than those from being reactive to Mr. Market’s whims ever will be.

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