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.