Stock Market

[fintstone]

Went to cash due to the election and impending fiscal cliff. Anyone else do the same? Anyone buying on dips?

[kaisen]

Parf?

[krichard]

I'm so terrified of the fiscal cliff....

Actually loving the dip because of emotional traders, getting some very cheap buys right now...

[Esel Mann]

Exact opposite for me.

Instructed FA to (a) re-align portfolio but doing so on the dips and (b) begin putting cash into play also buying on the dips. There is going to be some bumps for a bit so it's good opportunity to pick some good stuff up for the retirement account.

[pwd72s]

Since we reduced our equities to less than 30% of our portfolio some time ago, we're staying put...so far.

Might be a mistake, considering the tax hikes coming after Jan 1, but we're sure the market has already taken that into account.

Really, so much depends on your age, your goals, your tolerance of risk, etc. that giving advice on a forum like this is silly...

[weseeeee]

I went to cash on election day, so far it has been the right move.

[Esel Mann]

Interesting, dissing advice when nobody here is giving advice.

I do see folks here commenting on what they are doing and some thoughts. I fail to see any harm that imposes.

[Iciclehead]

56% cash at the moment, rest in long term dividend paying stocks.

I have a bunch of buy orders in at about 10% lower than current valuations, we'll see which ones of them catch.

Dennis

[recycled sixtie]

To me this is just another bump in the road. 2008 was a ditch - panicked a bit then and sold off some. This time am staying invested. Trusting that your politicians will do the right thing at the last moment. But no buying anything now!

[Don Ro]

Sold - total cash holdings.
Email from my financial advisor, 30 minutes ago:
.
Dear Clients,

A couple of hours after I sent you my email on Wednesday, all major markets dropped well below their 200-day technical support level. Therefore, we have liquidated all of our equity-based positions.

Since the election the President has made two public comments regarding the Fiscal Cliff. Markets declined substantially both times. Meanwhile, Thursday morning the government released dismal employment and inflation numbers. Finally, earnings reports for the third quarter continue to disappoint investors.

The scenario we have watched unfold since the election might best be described as “what can go wrong will go wrong.”

As you know, we regard cash as a viable asset class. Except for a few bond holdings, we will remain in cash for the time being. We have also delayed our purchase of TLT and GLD.

I’ll keep you posted.

Thanks for investing with me.

Keith
.
DeGreen Capital Management

[fintstone]

Thanks...I was 100 percent between small caps and S&P...did very well over the last few years and nearing retirement age. Went to 100 percent cash. Wanted to preserve capital. List a lot of real estate equity back in the crash and don't want to duplicate that.

[Scott R]

If you're still up given the current share price now is the time to liquidate and increase your cash. "Perfect Storm" per say in the market right now as mentioned in the email above. Good to have a cash position to weather this for a while.

[fintstone]

I think I am out until I see some sort of budget deal or at least tecnical support.

[Scott R]

Originally Posted by fintstone

I think I am out until I see some sort of budget deal or at least tecnical support.

Yea, you can always buy then and still be ahead.

[aigel]

Isn't it scary to sit on all cash - making your portfolio anything but diversified?

G

[Cannonball996]

I rarely hold a stock position over night. In my opinion, the market has not been a buy and hold market for over a decade. with the worry of the fiscal cliff, I am not sure cash (US dollars) would be the safest asset class to be in either.

[Scott R]

Yes, I didn't use the word "dollars" on purpose.

[imcarthur]

Originally Posted by aigel

Isn't it scary to sit on all cash - making your portfolio anything but diversified?

Even though cash is slowly eroding it doesn't swing wildly like the markets.

On the fiscal cliff, all of the rational 'experts' & Buffett agree that it will be solved. They might stall until into January for posturing, but it will be resolved. That, coupled with Europe slipping into recession promises a wild ride for the next little while in the market. Don't panic.

Ian

[sammyg2]

The only change I've made was to dump some european stocks and increase the percentage of large caps for stability.

I'll move more towards agressive when the dust settles.

[lukeh]

The day of the election I moved the entire 401k to the fixed account. I avoid market timing but you could see the writing on the wall. The week before the election all the water cooler talk was about getting out of the market and playing it safe for a while. I think it comes close to being a self fulfilling prophecy. Then after you see a couple drops you get more people running for the exit and it starts to just feed on its self.

Now the trick is to know when to get back in. Best guess is at the start of the year I will move back in 25% at a time. For those of you buying on the dips what do you do when everyday is another dip?