06-01-2014, 05:39 PM
Weird market. Up days are super light volume. Downs days are high volume. Margin trading at nosebleed levels. Artificially low interest rates driving a chase for yield. Three rounds of QE have been marginally effective at improving economic conditions. VIX at low levels.
I think the Hedgies and institutional investors are fully invested, hoping for another good bonus year, but at the same time are ready to bail at the first sign of trouble.
I have established my initial positions - currently about 16% of my portfolio. I have 50% in cash ready to invest and will just wait until the inevitable correction. It's killing me to have that much cash, but after living through multiple downturns I know I have to be patient. The real question will be how to spot the bottom, or the approximate bottom. 20%? 40%? 50%? Who knows....
I think the Hedgies and institutional investors are fully invested, hoping for another good bonus year, but at the same time are ready to bail at the first sign of trouble.
I have established my initial positions - currently about 16% of my portfolio. I have 50% in cash ready to invest and will just wait until the inevitable correction. It's killing me to have that much cash, but after living through multiple downturns I know I have to be patient. The real question will be how to spot the bottom, or the approximate bottom. 20%? 40%? 50%? Who knows....