The main (only?) move I've been making is further diversifying out of my company stock. Of course, every single sale of company stock has thus far been a big mistake, but maybe one day I will appreciate the discipline.
From anecdotal evidence, I believe that there are many others with high cash positions waiting for a market correction to put money to work. After a strong months-long rally in the stock market, there seems to be a lot of bearish sentiment out there. I just don't see a substantial correction happening, there are too many people like me waiting for a correction to invest their cash horde. My cash position is even higher than shown, because I didn’t bother to break out the substantial cash holdings in my brokerage and bond accounts. The cash level in these accounts has increased considerably due to some profit-taking I did this week and also due to the maturing of bonds over time.
5 comments:
A 31% gain in net worth in 5 months is pretty amazing, especially at this level.
It's mostly thanks to my company stock. But it goes both ways, I was hit hard in May when my company stock temporarily got crushed.
I also made some big bets in diversified stock when the market hit its bottom in May. So I fully participated in the market rally with a 14.3% gain in 5 mos. I am up 18.3% for the year in my diversified stock account, while maintaining around a 15-20% cash level in it (I am currently at 25-30% cash in this account after this humongous rally). Waiting for a substantial correction that possibly never comes.
I know I shouldn't market-time, but it works so well sometimes...
Well if it works you should do it. Of course 90% + of the investor population has no clue how to do it and so shouldn't. For those who can ignore the BS PR from the funds industry who don't want you to pull your money out...
rags, as you put on my blog. Let's hit the strategy on the Roth conversion diddy for 2010. Although, you are wealthier (that's a good thing). I will follow how you handle this going forward. It is a big question for me. How much taxable do I save? Do I lower my deffered comp to save? Do I stop paying down the mortgage to save for the taxes? I am planning for this one time opportunity. I am curious of others thought process...
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