Hello Dr. I,
Well, I've sure been thinking about this as the market has continued to climb and I've been finding less promising value stocks/prices. I don't know if a correction is coming, but as we've gone up, I've been hedging a bit by:
1) Taking profits and putting them into closed-end funds selling at a discount including CET, CHN, HQH, and PEO.
2) To hedge for inflation, I've been trying to find some values in Oil/Copper/Gold stocks.
3) I have a couple of foreign stocks selling around cash value with growth prospects.
And that's basically my entire trading portfolio. I'm not raising cash. That being said, I feel like if we go up, I still participate, but if we go down, I'm hoping that my stocks/cef's will go down less than individual stocks. And if we go down, I would then leverage back into individual value stocks as they got to be better priced.
I guess this is my way of being defensive.
Thanks,
cw |
