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Strategies & Market Trends : Value Investing

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To: Difco who wrote (43835)8/11/2011 7:46:27 PM
From: geoffrey Wren  Read Replies (1) of 78478
 
I do not believe in cash in the investment account, unless you are prescient enough to see a correction coming. If you do see one coming, and have confidence, then sell half your portfolio or more. But don't just sit with 10 or 20% cash all the time because crashes sometimes come.

When a crash occurs, sure you do not have cash. But you have your holdings. Some will be holding up well, and others will be tremendously down. So sell some of the stocks holding up well and buy some of the better bargains. This approach works a lot better if you are able to be on the computer during the market day to make some moves quickly.
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