09-01-2015, 08:13 PM
Two percent swings are meanigless, neither presenting particular value nor excess valuation. 15%-30% drops IMO will bother most any investor. However the most disciplined will be postioned to take advantage of the opportunity that such drops provide. For me keeping a decent sized cash allocation is part of that process of being ready and opportunistic. No one can predict the timing of the drop, but anyone can hold some opportunity cash for when the drop does come. I'm not a fan of systematic buying without reard to price, but there are times when that is likely the best approach.
Alex