<<What is your current strategy with respect to asset allocation?>>
Robert, I wish I could find a good strategy for asset allocation! The lack of solid alternatives is a major cause for the market's continuing climb. Right now I'm about 15% cash and the rest is in equities. I will probably grow the cash to 25% shortly since i think that some sort of correction is imminent(though, probably short lived).
I have tried to focus on companies that have very, VERY strong future competitive positions, which is why I like CYMI.
As far as CYMI goes, I'm not really concerned with what kind of numbers they make this quarter or even this year. If things go the way I think that they will, CYMI will be worth many times what it is today, in the year 2000.
I am not quite sure how the "bubble" will expand. If some portion of new social security savings is invested in the market it will surely lead to even greater gains in the market, but, they will not be sustainable. Currently, there seems to be a rapid acceleration of real estate prices in most areas of the country(commercial and residential), this is very similar to what happend in Japan during the final fews years of their bubble. |
