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Author: kelbon Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 21887  
Subject: Re: The Wheel of Fortune - Not Date: 9/21/2012 11:07 AM
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Speaking for myself I'd be down right giddy if I managed to go to 80% cash and the market then went on to crash.

So would I.

It's worth remembering that, over time, the direction of the market is up, not down, even though there is turbulence along the way. Predicting a big decline in the market is hard to do, though, sooner or later, it will happen. A stopped clock is right every twelve hours. History shows you can wait a decade, or more, for a meaningful and severe downdraft.

What I'm most comfortable with is to have a meaningful amount of cash at all times for when bargains present themselves and to replenish when an individual stock becomes more than a little overvalued. Call this traditional and balancing if you like, but it's nothing to do with having x % in bonds, x % in cash, x % in stocks, etc.

Also around 30% cash.

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