[quote=flu][quote=ltsdd]Good news: I was 60% cash since the beginning of the year
Bad news: I pushed half of it back in yesterday
…I think I’ll sit on the remaining 30% until the smoke cleared.[/quote]
Dude, I’m sorry. But you know what, imho, this hysteria doesn’t make any sense, you’ll be fine.
In the future, here’s my advice. Aim small, miss small.
If you have 60% in cash, don’t do what everyone else does and move a huge chunk of it back in all at once. This big bang approach more often times fails than succeeds. You want to diddy it up in smaller blocks. Because you can’t guess absolute bottoms or absolute tops. So for example, move 10% yesterday, move 10% today, more 10% next week, etc. That way if you guess wrong on your timing, you don’t run out of bullets.
I say this, because I learned this the hard way when I was buying selling stocks when i was 20, and got burned on one hand. Everyone at some point learns these lessons at some point or the other, so don’t sweat it. You’ll be fine in the long run.
The good news is you have 50% of your bullets left! That’s still a lot of bullets.
A friend of mine just pointed out JP Morgan is on sale. 2.85% dividend yield. I’m in.[/quote]
Truth is I am at the point where my “go to hell” fund is more than adequate. Conventional logic dictates that I stay the course – stick with what got me here. However, it’s easier said than done since I don’t want to risk losing the financial independent status. I am far more “sad” if I were to lose $100K than I am “happy” gaining $100k. I would not go beyond the 70/30 ratio (cash/equity), but at the same time I like to lock in my profits when it makes sense. I guess in not so many words, I am more focused on protecting what I already have.
