Hold cash?

[navyasw02]

I regularly contribute to my brokerage account every 2 weeks. I'm thinking about holding cash in the account until after next month's fed meeting. Is anyone else doing the same?

[Roadmap2Retire]

Yup. I am planning on building up my cash position (although I get tempted to buy seeing some really good value out there in some stocks).

[Rasec]

Same here, hoarding cash at the moment. I was close to hit the buy button in 2 positions this week but decided to wait.

[Kerim]

I try to always have a nice little pile of cash around, so not really making adjustments based on possible interest rate moves.

[Caversham]

My cash position just fully recovered from my August/September buying.

Currently, I plan to wait until the Fed's decision before buying anymore companies.

Hopefully the Fed delivers a nice Christmas present and companies go on sale.

[rapidacid]

I buy on margin if there's a screaming buy ( rarely ) and then sell options to build cash to cover the price. YOLO?

[BLTN]

I also am sitting on quite a bit of dry powder myself waiting on a pullback. Do most of you think there will be a pullback if interest rates only go up a quarter of a percent? I think it is already built in and may cause a rally. Also probably would cause REITS and anything with high floating debt to pull back and financials to advance.

BLTN
Better Late Than Never

[rayray]

I have an "x" amount of cash reserves; however, I contribute weekly into my brokerage cash account and sometimes to the ROTH also on a weekly basis. Sometimes the ROTH is invested in one lump sum in January--it just depends. My "x" amount in cash reserves is not for investing, it's in cash because I like having an "x" amount in cash. Once my brokerage cash amount reaches an "x" amount an investment is made no matter what the market is doing, there is always an investment to be made at a decent price.

So,

Do I hold cash? Yes.

Do I hold cash to wait for market corrections, dips or sales? No.

Why? Because, I have no idea how the market is going to react to gawd knows what is going to happen in what time frame.

[EricL]

I rarely hold cash as I can always find something to buy, regardless of where the market it at. I may miss out occasionally on bargains, but figure with all of my dividends being automatically reinvested I will still get some benefit from price drops with those.

[NilesMike]

Are we to assume that those holding for the FED meeting know what the result of that meeting will be? Or that they know what the reaction to the result will be?

I didn't think so.

Stick to your game plan, there have been and will be many more FED announcements, terror attacks, tsunamis etc. Good companies know how to work through these things. Just find good companies within your DGI framework, don't overthink the unknowable.

Good luck to all.

[crimsonghost747]

I have a separate cash account where I have a pretty large chunk of cash. The main idea for that is to buy an apartment/house with it at some point but it also serves as an emergency fund and as a place to grab some cash from for investing if I need it.

Apart from that I always have the chance to use margin but that is only reserved for very large dips.

So no, not saving any cash in anticipation of the FED. But I do have cash at hand, as always, so I can react if I see some real bargains out there.

[Rasec]

(11-23-2015, 10:06 AM)NilesMike Wrote: Are we to assume that those holding for the FED meeting know what the result of that meeting will be? Or that they know what the reaction to the result will be?

I didn't think so.

Stick to your game plan, there have been and will be many more FED announcements, terror attacks, tsunamis etc. Good companies know how to work through these things. Just find good companies within your DGI framework, don't overthink the unknowable.

Good luck to all.

Personally, I'm not particularly waiting for the decision from the FED meeting, I'm just waiting for better entry points, whether it's due to a FED decision, poor results in China or a revolution in Venezuela, quoting a wiser person than me "there's always something" so I'm just waiting for a dip. It will happen, I don't know when, but it will!

Right now I don't see a lot of appealing positions in the SP500 so it's better to stay put.