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Seems, I am keeping some good company with some of the top notch value fund managers’ thoughts with the large cash position that I now hold in my portfolio. When your own thoughts are close to some of those that are the brightest value fund manages in the business perhaps investors that are not on this path might consider taking heed with their positioning.
Now, I am not talking about savers who usually accumulate positions in cash and cd's, nor traders that take up positions in momentum based strategies or speculators who seem to be with the wild side. I am talking about those investors much like myself who have accumulated their investment positions over time. For me it is buy low when equities are out of favor and then sell some off after they have appreciated and have become somewhat fully valued. Some may recall I started a systematic sell down process beginning at the first of the year where I sold down my equities at about one percent for each 25 point of advancement on the S&P 500 Index through early summer where I stopped this as my equity allocation reached a low approaching the low 40% range. Its high range since 2008 has been in the low 60% range. In doing this I have now built a sizeable cash position while at the same time my equity allocation has grown within my portfolio due to some asset purchases, as value was found, along with some good capital appreciation. In addition, it seems some of my flexible and hybrid type funds have reduced their allocation to fixed income securities, since summer, and raised their allocation to equities. All of this has now resulted in taking me to a mid point weighting in my equity allocation at about 50%. Since, we have now entered the traditional fall stock market rally season I have decided to ride the equity train as long as the upward momentum might last or the traditional season ends towards the end of April. Seems a plan has now come full circle as I am now positioned as to what I’d call an all weather allocation. In addition, I am currently in a cash accumulation mode as I am taking all mutual fund distributions in cash since I feel stocks, in general, are now too overbought for new investment.
Hopefully, in the near term, you'll be reading that I have entered another systematic profit taking mode. Especially, if equities reach a projection, stated by some, that the S&P 500 Index has a good chance to reach the 1850’s or 1860’s (maybe better) before year end. If so, I’ll be a most happy camper and harvest some of my equity allocation booking some profit.
I invest in keeping with my belief that one should take profit from time-to-time (harvest), within my risk tolerance, achievement of goals, time horizon and most important within my abilities and capacity.
I hope I did not ramble … as one comment that I made above seemed to lead to making another.
Have a good weekend … and, I wish all, “Good Investing.”
Comments
Seems, I am keeping some good company with some of the top notch value fund managers’ thoughts with the large cash position that I now hold in my portfolio. When your own thoughts are close to some of those that are the brightest value fund manages in the business perhaps investors that are not on this path might consider taking heed with their positioning.
Now, I am not talking about savers who usually accumulate positions in cash and cd's, nor traders that take up positions in momentum based strategies or speculators who seem to be with the wild side. I am talking about those investors much like myself who have accumulated their investment positions over time. For me it is buy low when equities are out of favor and then sell some off after they have appreciated and have become somewhat fully valued. Some may recall I started a systematic sell down process beginning at the first of the year where I sold down my equities at about one percent for each 25 point of advancement on the S&P 500 Index through early summer where I stopped this as my equity allocation reached a low approaching the low 40% range. Its high range since 2008 has been in the low 60% range. In doing this I have now built a sizeable cash position while at the same time my equity allocation has grown within my portfolio due to some asset purchases, as value was found, along with some good capital appreciation. In addition, it seems some of my flexible and hybrid type funds have reduced their allocation to fixed income securities, since summer, and raised their allocation to equities. All of this has now resulted in taking me to a mid point weighting in my equity allocation at about 50%. Since, we have now entered the traditional fall stock market rally season I have decided to ride the equity train as long as the upward momentum might last or the traditional season ends towards the end of April. Seems a plan has now come full circle as I am now positioned as to what I’d call an all weather allocation. In addition, I am currently in a cash accumulation mode as I am taking all mutual fund distributions in cash since I feel stocks, in general, are now too overbought for new investment.
Hopefully, in the near term, you'll be reading that I have entered another systematic profit taking mode. Especially, if equities reach a projection, stated by some, that the S&P 500 Index has a good chance to reach the 1850’s or 1860’s (maybe better) before year end. If so, I’ll be a most happy camper and harvest some of my equity allocation booking some profit.
I invest in keeping with my belief that one should take profit from time-to-time (harvest), within my risk tolerance, achievement of goals, time horizon and most important within my abilities and capacity.
I hope I did not ramble … as one comment that I made above seemed to lead to making another.
Have a good weekend … and, I wish all, “Good Investing.”
Skeeter