The Big Picture.

Again....enjoy a good stuff from Ch.T.

 

Tropo

I agree, there is nothing wrong with capital preservation during these uncertain times.

I wonder though,
is a possible further 20% or 30% drop considered a good reason for switching over to cash?

I wouldn't do it if my portfolio was tiny but I'd do it without a 2nd thought if there was a considerable amount of money at stake.

Cheers

 

Bill,

That is a 1 bil $ question and in my opinion nobody on this planet is able to tell you yes or no.
It’s not important what you or I or anybody else think. What market thinks is what really matters.
There is a real possibility that market may hit my last level which is well below 4000 (XJO), but on the other hand nobody is saying that it will happen.
There is no difference if you lose $1 or $10. Loss is a loss !!!.
One of the most important rule is to preserve your capital !!!!.
If one day you lose it all or most of it – you are simply out of the game for good!.

I said before that it is not that important where the bottom is but when market will recover.
If history may be of any assistance, last time market moved sideways for 4 or 5 years in approx. 800 points range (this time market may take much longer to recover).
After all, nobody can tell you what you should do with your own money.

 

Thanks for the link Tropo.