Skip to main content
Message Font: Serif | Sans-Serif
 
No. of Recommendations: 2
Rich,

Don't expect an immediate complete response from me after pointing to such a lengthy tome (not to be redundant, but it deserved it).

FYI, I'm cautious but not nearly as much as implied by the portfolio you've described, which would seem to be nearly 90% cash. I'm not sure where your (a)-(f) principles fit in when you appear to have so little currently invested right now.

Personally, when the market feels a bit frothy to me, I like the idea of having some money in counter-market things that could be easily liquidated if/when a correction actually happens. But since I've been expecting that correction for about the last 20% gain of the S&P, I've not only missed out on a lot of upside, but I've had some of those contrarian investments go real sour as well. It's been a nice (albeit somewhat painful) lesson about calculated risks with well-defined downside (which unfortunately I didn't adequately employ).

OTOH, we've all got to do what we're comfortable with, and we all have different manners and levels of risk tolerance. I need to remind myself to listen to the advice that I've given others: don't confuse the quality of a decision with the outcome that results. Given the uncertainty/randomness of the world, it might have been pure chance that something turned out good/bad, so a decision should not be second-guessed purely with the hindsight of the actual results. (My most recent example was talking with a friend yesterday who's been renting the past 12 years and consternating over buying a house, especially during the past few years after the housing bubble burst -- but owning a home may not be the right thing for him to do, given that he still can't see beyond a couple of years into his future.)

as always, i am full of carp

... back to the deadlines at work ...
Print the post  

Announcements

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.
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
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.