08-21-2015, 05:03 PM
If DOW 12,000 was in the cards, I would be pretty ticked if all of my cash was deployed at 16,500. I'm not expecting DOW 12,000 any time soon, but am prepared to take advantage should it come. If on the other hand, the market turns and moves up, up and away, I'll also be delighted as my long positions take off. Back in the Fall of 2008, I pulled all of my money out of stable value fund which had held up very well through the correction. I think that the DOW was around 10,000 at the time. All of the proceeds were moved into an array of solid stocks. Then the tumble continued down to 7000 or lower. Boy, I felt really dumb for having gone in all at once as opposed to feathering in. Better to wait for the bottom and then continue feathering in on the way back up. Trading appears to be getting disorderly, and that gives rise to all kinds of irrational outcomes.
Alex