Sonki, I agree that staying "on the beach" does no good.
And, I'm by no means a perma-bear. At this time, however, the upside potential is overwhelmed by the downside risk IMO. So, some money comes off the table.
Regarding DELL, my position/s have been (until this afternoon) overall bullish. I'm now flat.
With respect to "value," this is of course subjective. If we agree that something is "overvalued" then our participation creates conflict. We have, by definition, suggested that a value system is skewed -- irrespective of whether some buyer and seller agree -- hence, risk is increased. This is not problematic unless the bulk of our wealth is leveraged against such an unknown.
As far as money migrating from market to market, I'm unconvinced that wealth is a constant in some closed system. On the contrary, history suggests that wealth can diminish on a global level. That the Nikkei has suffered since '90 does not assure success in the DOW. (And, since the Yen, Yuan, Ruble, A$, etc. have lost value, presumably these have less buying power when it comes to US equities.)
Until things stabilize, I'm willing to incur some opportunity cost. The 90/10 rule ain't looking so bad right now. BWDIK
Regards,
Alan |
