Howdy,
One can't move money with any speed when their "fund pants are down", eh ?
To help you know the circumstance, I/we will likely be out of electronic contact
with the world of investments (this constitutes the funds pants down) at and when
the D.C. crowd does or does not come to a decision with the debt ceiling limit
and whatever other "cute" things may be thrown in the mix for flavor.
Now, I've read and listened about the possible market(s) reactions; and I am still
not convinced anyone really knows the outcome. I personally suspect a negative
bond/equity reaction would be short lived....like, no more than a few weeks. I don't
think the big money kids could or would hold the hot cash money for very long, if
there was to be a down bond/equity market move of more than 10% before
jumping back in (this is not a surprise, as was 2008).
We all have different mutual funds loaded upon and in various "investment boats".
Some of the boats are better suited to riding out a storm, than others. However,
our worse case here is that we would not be around to help pilot any boat.
So, the big easy question; with an almost impossible answer to ourselves is whether
to reduce some holdings and into cash during our absence or just take a "ride".
OK, just talk'in with writing to help think.....:)
Regards,
Catch
Comments
Well, I remember that we were traveling in Scandinavia autumn 2007 when the whole shebang came unglued, and what a helpless feeling to read in the newspapers that everything at home was falling / had fallen off a cliff. We stupidly thought that just because we had no direct exposure to any of the real estate bubble stuff that we would pretty much be OK. Right. Sure thing.
We are going to England/Ireland Scotland/Wales for about a month in September, and I might very well go to cash for some amount of our stuff. With the way the world markets are virtually interconnected these days the problem is that almost anything anywhere can set things off, at least for a while.
And while some businesses seem to be doing fairly well right now, I keep reading nagging reports that almost no one is being hired. How long can that go on before something breaks?
I'd be inclined to play it safe, but maybe I'm being too negative.
Take care-
OJ
Hi OJ, I do believe from my recall that you holdings were about 1/3 each in various bond, equity and cash holdings in the past couple of months.
I think this mix will keep you in the safe zone; but it is understandable to feel your concern with being on the other side of the pond and limited or no access to making any portfolio changes.
The tour sounds wonderful; and especially the always "best" part of most trips to be able to sample the food and liquid refreshments of other cultures.
Take care,
Catch