As I trade in and out of stocks fairly regularly, my cash position fluctuates from week to week, or even day to day. Right now, I am 31% invested in stocks and the other 69% in cash, waiting for a good opportunity to buy. I looked into interest-bearing vehicles for short-term investments but none of them return enough money to be worth tying up my money. I like to be nimble - have the cash ready to put to work when the opportunity arises. [If anyone has any suggestions of a risk-free interest bearing short-term vehicle that pays at least 2% per annum, let me know]
While the markets have had a nice run, I do still expect a correction in September when the traders get back to work and the volume picks up. I don't really expect a huge correction but a 10% pullback would not be a surprise and it would actually be a good thing, to shake out the weak shareholders and prepare for the next move up.
For now, momentum is still upwards and I will ride it as long as I can. "The trend is your friend, until the end."
About Me
- marketjockey
- I am a private investor who uses mostly the moving average (MA) - and some market news - to decide what to buy and sell, and when to pull the trigger. While I only buy a new security when its price passes upwards through the 50-day MA, I do sell sometimes to look in good gains and not only when its price drops down through the 50-day MA. I am off to a good start in 2014 despite the sell-offs early in the year (up 10.11% overall YTD as of Feb 28), so I hope to continue that. My goal is to choose more winners than losers and to minimize the size of the losers (sounds easy, doesn't it?). Please don't interpret my posts as investing advice - I am simply posting what I am doing.
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