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At one time was on top of all the technicles, but no longer. At age 80+ I have an asset allocation and positions I stay with thick and thin. Sure at times I will add fund or replace one but rarely. And I sleep better.
Here is what I have decided to do in management of my special equity investment spiff assuming the market continues its upward advancement.
Now that the S&P 500 Index is in striking distance of 2,100 I have decided to reduce my equity allocation by one percent for every twenty five point gain on the Index above the 2,100 mark. In doing this, the dollar value will remain about the same within equities but my cash position will grow as the Index advances and I move through the process.
Should there be a 125 point gain in the Index during the first quarter of 2015 with it reaching a value of about 2,225 then I’ll take a five percent reduction at the fifth 25 point step. In doing this I will have removed sums of approximate value for the spiff itself plus removed some capital appreciation form the equity side of the portfolio while at the same time increased my cash allocation by a like amounts through the process. Thus, I’ll be reducing my overall portfolio risk as equities have advanced; and, by my thinking continue to becoming well overbought. At this point I will revisit and revaluate my posture.
If the plan is successful then this special spiff will have produced better than a 13% return since mid October through an averaging in and out process.
Wishing all … “Good Investing”
Old_Skeet
Note: All of this is subject to change should the market move against me beyond a mild dip.
“Far more money has been lost by investors preparing for corrections, or trying to anticipate corrections, than has been lost in corrections themselves.” – Peter Lynch
Comments
Thanks to all that have made comment.
Here is what I have decided to do in management of my special equity investment spiff assuming the market continues its upward advancement.
Now that the S&P 500 Index is in striking distance of 2,100 I have decided to reduce my equity allocation by one percent for every twenty five point gain on the Index above the 2,100 mark. In doing this, the dollar value will remain about the same within equities but my cash position will grow as the Index advances and I move through the process.
Should there be a 125 point gain in the Index during the first quarter of 2015 with it reaching a value of about 2,225 then I’ll take a five percent reduction at the fifth 25 point step. In doing this I will have removed sums of approximate value for the spiff itself plus removed some capital appreciation form the equity side of the portfolio while at the same time increased my cash allocation by a like amounts through the process. Thus, I’ll be reducing my overall portfolio risk as equities have advanced; and, by my thinking continue to becoming well overbought. At this point I will revisit and revaluate my posture.
If the plan is successful then this special spiff will have produced better than a 13% return since mid October through an averaging in and out process.
Wishing all … “Good Investing”
Old_Skeet
Note: All of this is subject to change should the market move against me beyond a mild dip.
Upcoming Correction
Tampabay
September 15 in Off-Topic Flag
“Far more money has been lost by investors preparing for corrections, or trying to anticipate corrections, than has been lost in corrections themselves.” – Peter Lynch