RE: "In July 1998, and afterwards, you quietly stated that you were reducing your allocation to stocks, both US and European, within your portfolio. In August following, you again quietly enunciated your intention not to participate in Brinker's vaunted and twice-told "buying opportunity" below 8650 on the DJIA and 1090 on the S&P 500."
Thank you for the kudos, but it was really Bob that told me to follow the above path. First, Bob always says that the most important decision one makes is the asset allocation. This should be done considering all of your financial assets as a single portfolio. Following Bob's advice, I set my asset allocation at a level I was comfortable at.
Second, at the time the market was making new highs, Bob reminded each and every listener to get his/her asset allocation in line. He specifically pointed out the fact that the big stock gains from huge bull market may have resulted in an overweighted equity position and that, with the market at historical high valuations, investors should correct any imbalances. So, I again followed Bob's advice and reduced my equity exposure to my desired allocation.
Nevertheless, I did buy some stocks and mutual fund shares over the past week. These purchases were predominately made with new money and money from some of my stock sales when the market was at highs. The valuations of many stocks are really starting to get compelling. Of course, if we move into a world depression similar to or worse than 1929/30's, as many on SI are forecasting, I will have made a mistake.
Best wishes,
I2 |
