Cash

How many people went to a cash place this week? There is no inquiry that this market have scared the bajebers out of many investors, me included. Fortunately, I started going to cash some clip ago, but I did give back a significant amount of my profit.

Your broker never desires you to be in cash. You might take it out or put it in something else. "Don't worry, the market always come ups back." Yes, and hogs can fly. Fund managers are even worse. Because I urge selling out temporarily and going to cash makes not intend I don't have got a long-term program. It intends I don't desire to take part in a down market. CASH IS A POSITION. It is the same as owning Vanguard Index 500 when the market is going up and being in a Money Market Fund earning interest while the market is going down, but not losing your principle. Brand sense?

Brokers will state you over and over that you cannot "time the market". WRONG. Just because they are not smart adequate to make it makes not intend it cannot be done. I have got got been doing it for old age and have never been caught in a bear market. Even the Federal Soldier Modesty Board published a paper saying that "market timing" works. There are timing programs or services that tin be bought that are very simple and easy to understand. To protect your retirement finances you must have got this in place.

In my column last hebdomad I called the market a Stealth Bear. It looks like it have come up out of its den. You don't desire to be around when the bear is running loose. It can ache you.

During this past few hebdomads we have got seen some technical school pillory lose 80, 90% of their value, but how about good ole Proctor & Gamble dropping 30% inch one day? That is a stock held in a high percentage of retirement portfolios and hundreds, if not thousands, of common funds. It is going to be a long clip before we see new highs in the Nasdaq Complex and the ground is very simple. There are people and monetary fund managers who have many pillory that they would wish to sell to get "even". Know anyone like that? This effectively sets a cap on any resurgence back to the top.

I have got no thought if the market is going to travel lower, but the inclination is toward more than selling, not buying. This is a good clip to have got a place called CASH.