This image is almost otherworldly. Reminds me of some of the computer generated special effects in Hollywood movies. Unfortunately, it also sums up my feelings on the current state of the stock market (especially my euro denominated assets), but I'm sticking with my asset allocation strategy rebalancing periodically.
I concur with your strategy. One thing I will mention is that many times investors feel they have to do all or none in the investment world. If you are feeling uncomfortable raise 5% in cash. It makes a difference in volatility. The mistake investors make is they bite the bullet 100% until they can no longer take it then they capitulate.
ReplyDeleteI offer this for your readers. I know you are an experienced investor and have been through these situations before! :)
As I've said in other posts and comments, I'm a pretty conservative investor and play defense before I play offense. Limiting downside seems to be more important in long term returns than maximizing upside. I've been investing in the markets since the beginning of the 1980's and have seen many cycles of euphoria and pessimism. I actually keep something close to 10% cash most times, which was a lot easier to do when money markets yielded 5%.
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