Those stocks you bought when they were cheap are now suddenly expensive, and the other stocks you're following are also getting expensive. So what do you do with any new money that becomes available? I maintain my standards and invest only in those companies that increase their dividends and have an estimated total return of over 10% during the next year. That means my pool of available candidates starts to get slimmer and slimmer. As the market continues to rise, this pool continues to shrink.
Of the 70 companies or so that I track on a daily basis, I'm now down to eleven companies that fit my criteria. Below is a list of those companies and they're the companies whose securities I will be buying in the days and weeks ahead (as long as they continue to fit my criteria).
Las Vegas Sands
1 yr Cap Gain
Total 1yr Return
Other investors that invest similarly also recognize this concept and they also end up investing in fewer and fewer stocks. When that happens, the market is topping. And when the buyers stop buying, the sellers start to take control of the market.