Do not know the score yet, as need to do zero-reset revaluation based on net-liquidation value of all goodies and baddies, realistically, to better recalibrate / reassess / refine / fine tune / way-point alignment
I am seeing folks talking about putting 20% of 'cash' to work in the market now, and I thought, assuming one is 100% all-cash, putting 20% to work would mean potentially suffering a 10% drawdown. In this market, in order to make up the difference of 10% drawdown, one would need to put still more cash to work, and pretty soon, chasing own tail. Or, more apt, devouring own tail ...
Here below are two sample portfolios, one belonging to Jack (9) and the other to the Coconut, as managed by themselves but of course given suitable choices of approach and instruments. Both started at 10K start of year, and neither can do options, but shorts Ok
The Coconut chose to sell, step to cash, and concentrate on her studies and dancing.
The Jack chose to treat all as a computer game, but still cautious enough. I pointed him to some forks in the roadmap whilst walking him to school (playgroup, as school is out), and he chose:
- put 50% of $5,488 to work going long, spread between oil, metals (Pt, Pd, Ag, Au), XOM, DRD, NVDA, NTFX
- short something if such can still be identified (based on likeliness to BK)
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