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Makes sense. More sensible option Might sell 50% (or less) and look to rebuy later. Not trying to call the bottom but if I can buy at 10% discount it'll be worth doing.
Gotta be in it to win it.
wildwest-
And if you have to buy at a 10% premium it won't.
Good luck - you'll need it with that strategy! -
Gotta be out of it to win it?
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Another way to think of it, is if you move 10k to cash and the market moves up 25%, you've still got 10k cash.
You're only risking potential earning, which isn't really risk at all imo when you think of it in terms of cash.
frank9755
Howard
seager
Yes, agreed. Article in the FT today about asset managers increasing their cash holdings.
However in the detail it provides that net cash held by the basket of fund managers surveyed increased from 5% to 5.3% of their overall portfolios.
Same with Buffet, Berkshire has a huge cash pile and they have sold out of some companies (pharma mainly, I think I read?) but they still have a much larger amount remaining invested.
So it's a bit of a different strategy to sell everything and buy back in later.