03-05-2014, 05:28 PM
Some of both, but as the cash account grows, holding only long term positions, the ratio will shift over time. I'm mostly very bearish, as IMO too much of the current economic activity and corporate profits are a result of the fed's printing funny money and as a result of their artificial low interest rates. Couple those concerns with a variety of world wide issues leads to my view of this being a frothy market. P/E's look good because of artificial profits. When the punch bowl gets pulled back, both industry and the markets may suffer serious withdrawal symptoms.
Alex