Trading in the markets today is best described as complacent. The Greeks were told there would be no more bailouts for them by the rest of Europe. The EU reached agreement on an oil embargo against Iranian oil. The Iranians said that they surely would close the straits of Hormuz. But the markets pretty much ignored all of this. After months of fears of bad news, the possibility of some really bad news is now just being ignored.
The possibility of bad news is not a reason to cut and run out of one's investments. Nevertheless, these possibilities do make it a good time to cut down on risk a bit. I would take profits on some of those investments which have performed well. I would also consider writing covered calls against other positions with nice built in profits. Lastly, I would take a long look at any investment that covers European or Asian markets or which would get hit hard if oil prices soared. Remember, when everyone thinks that there is no reason to sell (like now), it usually is just the time to do so.
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