Cash is King
I meant to post this last night (it went up at RM) but Man, this market cannot hold a bid, can it?
I've been watching the breadth and the volume, thinking that a rally on decreasing A/D along with weak volume would make for a good fake. But we're not even getting that. It must be tough to be long after enough of these mediocre days -- they just wear you down.
On a personal note, on Wednesday Missus Big Picture and I moved our personal retirement accounts into money market funds (2.7% -- woo hoo!).
If nothing else, I eat my own dog food...
UPDATE: April 7, 2005 10:05am
To clarify, the retirement accounts are all mutual funds; I am still long a few trading stocks that have not given sell signals. My longs are primarily energy stocks, plus a few micro and small caps, primarily involved in IP, as well as shares from the company I am on the BoD. Oh, and some company involved in this newfangled doohickey called an iPod.
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If you see us in a longer term range bound market (much like the 1966-1982 period) nothing wrong with cash. Personally speaking... I moved my retirement accounts to cash in January. Accounts which can be more actively managed are different. I am short the NDX, long energy, TLT, GLD, (long) STRIPS and holding a large cash position. I added the long bonds over the past few weeks.
I wonder what asset allocation models would look like if the only periods considered were 1927-1945 and 1966-1982??? I think cash would carry a much higher weighting than it does in the average investor portfolio.
Posted by: John | Apr 7, 2005 10:54:13 AM
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