No. of Recommendations: 0
"My problem of selling things is what do I do with the cash? There is already so much cash doing nothing."

Holding cash in a taxable account is no problem as I can loan it our safely at prime-plus-a-half, add to my puts which were sold down in late December and early January, or buy a few foreign equities where valuations are lower.

In the retirement accounts, the best I can do is 3.0% and tie it up for a year or so. Therefore I am holding about 15% cash in my retirement accounts.

"Separately, markets 80% of the time are in rally mode. So you have to be in the market to get the most of the gain,....."

If you look at the U.S. equity markets over the last 30-40 years, 80% up is about right. If you raise the bar to up 3% that percent falls to 73% and if you raise it to 6% it falls to 67%.

"You need to be in the market for unusual situations like that."

Unexpectant things happen in both directions - good & bad. KIM & BRX shared three major tenants going bankrupt last year in a good economy. In a bad economy that number would be expected to rise. Put in the 20-30% gain since I bought and why hold?

"How do you balance?"

I gave up rigidly fixed asset allocations back in late 1998 when I got out of large cap U.S. equities entirely - a year too early I might add! I do try to not to put all my eggs in a single basket though.

On one hand Europe is on the verge of recession with no hope of lowering interest rates to help, China is slowing, BREXIT, etc.,. Here we've goosed our markets with a tax cut while ballooning our federal debt or in other words we are fiscally goosing our economy and markets during the good times.

In January, I was up a little over 20%, my third best month ever, and so far in February I am on a pace to make 10-15%. Just taking a little off the table while I am ahead.
Print the post  


What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.