I am going through the portfolio with a hatchet this morning, cleaning up positions and trimming them down. My goal is to raise my cash position to 10%.
Ten percent.
That critical number which I aim to keep all my positions at; because that’s what cash is now.
Henceforth, I am investing in, “The Gubment,” in anticipation that their value is being greatly underestimated.
It’s not so much that I like the “company” now, as that I see the seedlings of reform being planted. The potential is in the works for the ‘ol “stock price” to barrel through the roof. On the one hand, many of you are probably shaking your head in disbelief, reiterating to yourself how they are utterly frozen most of the time these days. How they accomplish nothing and devalue the currency, et cetera, et cetera.
And all of that is true. But remember that they were mainly setting themselves up for this when they were getting things done. In light of that, their accomplishing nothing is actually a great improvement.
Plus, Europe has been getting torched for weeks now. We haven’t been saying much about it because of the Japan fiasco, but these events will come home to roost. Mark my words, we’re back where we were in 2010. A further collapse of the European states has not been priced in.
So I’ll be holding at least 10% of my portfolio in cash from here on.
You see, despite fully jumping on the devaluation station back in ’09 via large purchases of precious metals and massive leverage, I know when not to press a bet. And, I love this country, despite it being run by degenerate crack heads, and trust that is will ultimately succeed.
Bring back the all mighty dollar!
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Have been feeling this sentiment for a while, great post.
here here, i have this feeling that by what you say, and trying to gauge the bernanks’ style, of “trimming the sails”, ala ,banking coin from all the equity they bought. there last hurdle, is the exit plan if they have one,and are they going to use the last of qe funds as a back stop just in case when he ups the rates and everyone flips out cause you know its coming. will that slam the pm’s, some say yes,some think no. sometimes i think that the bernanke is way way underestimated.
All done; I just went by weight until I had the cash I wanted. The 9th floor is packed and locked up.
I’ll be flying out tomorrow to head to a far more tropical location, sipping feminine, low acohol content drinks, because they taste good.
I’ll be back in a week, for regularly scheduled commentary. I’ll drop in now and again, just to see what’s going on.
You all stay safe.
Well done
Good plan. I’m watching carefully for this week’s bank earnings. It will set the market tone.
Any recovery will be led by the banks.