02-09-2014, 03:44 PM
(02-08-2014, 06:02 PM)CritMass Wrote: validates the wisdom of keeping a percentage of your portfolio in cash, and ready to strike.
If that's what you feel comfortable with. The question is, you make those well-timed strikes and then you have no significant amount of cash left. Then what? Depending on circumstances, it make take a while to build up capital from new contributions. If you're retired, then you're in the distribution phase and the cash will be going the wrong way.
I happened to have some cash leftover from trimming a couple positions. Both my wife's and my portfolios are 99% invested now and we won't have a significant stake for another few months. That's what works for me. In the meantime, I'm watching earnings reports and dividends. Another 6.8% bump on one last week. Yippee!
We all have to do what keeps us in our comfort zones.
Rob, that is a scary chart. No wonder everyone was in a panic.
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“While the dividend itself is merely a rearrangement of equity, over time it's more like owning an apple tree. The tree grows the apples back again and again and again, and the theoretical value of the tree doesn't change just because of when the apples are about to fall.” - earthtodan
“While the dividend itself is merely a rearrangement of equity, over time it's more like owning an apple tree. The tree grows the apples back again and again and again, and the theoretical value of the tree doesn't change just because of when the apples are about to fall.” - earthtodan