First thing you have to do is HAVE CASH to alloctae to stocks when they fall. I have spotted last 2 bears, I'm good there, but once you come or at least REALLOCATE to reduce suffering in a bear....but must also raise cash when the SIREN sounds and sometime yes get 100% out of stocks......allocate to bonds, commodities etc.....depends on circumstances.
Demand remains strong for stocks, doesn't matter why....my commentary is for big picture.....and it does help me be watchful....as was case in 2007....but technically I do not see red flags as yet....crash could come from nowhere, no one can see that.
Point is, you don't go all in all at once, ease in.....especially when trend establishes itself....so maybe as good friend suggested you expose up to 25%...depends on what you can be comfy with.
This is for those who manage funds themselves, not many advisors every take you out.
If you ease in, if I was wrong at bottom in 2009....I have PLENTY of fuel. I could argue I bought 25% at lows, but then DOW crashed to 4,000....so I buy another 25% at bargains of life......as trend eventually turns up...my first purchase will be in money and I begin to add as trend strenghtens.
This plan makes sense, takes gambling out, big hit mentality will lose you money most of time....and keep you OUT looking for perfect entry.....we don;t have to agree.....but some have been to my blog and suggested world not ending and is now heading to that target perhaps to 1200-1250.....on MOMO, on liquidity.
That may end badly and I'll be on lookout for technical signs, along with my knowledge gained from Lowry commentary and data
D
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