Quote:
Originally Posted by jayswin
^^^^^^^
Yep, I've been thinking about moving to a much higher percentage of cash at some point as I feel we'll see a correction at some point this year (although, the economist has had some analysis lately that shows we could also just keep pushing through the year).
But man, that's the hard part of the game. Pull out and miss possibly months of gains (time in the market vs timing the market) or wait one day too long, lose a bunch and not have tons of free cash to buy up.
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Getting out has its own challenges because you will feel remorse while it continues to rise.
It is more manageable to do things is stages. If you have a target mix of 70/30 and you think things are getting a bit crazy, reduce your exposure a bit and move to 65/35. If it keeps getting crazier, move to 60/40, then 50/50, etc
Eventually there will be a correction. And at that time, you can rebuild your equity exposure.
But trying to time it, and be a hero, is not only difficult, it is often counter-productive. It is always best to set targets and then STICK TO THOSE TARGETS WHEN THEY ARE HIT. That is how you eliminate the emotions from investing.