re: prolonged periods of reinvestment risk as you sit in cash waiting for valuations to return to normalcy
I've never found that to be a problem. I usually end up waiting weeks, or at most a few months, before something is crashing. Never many months, or years. I've been able to do this, by "casting my net wide", and following biotech, manufactured housing, cruise ship industry, generic pharm, etc. Something is always hated; everything takes its turn on Mr. Market's trash heap. No, my tendency is in the opposite direction: not waiting long enough, getting in too quickly. I've had several people tell me that, after following my posts for a while, they decide I tend to buy too early.
I've noticed that my "old economy" stocks (CMH, CCL, WPI), tend to be up, on days my techs are down, and vice versa. Of course, when airplanes hit skyscrapers, everything plunges. That's when I use margin. |
