Quote:
Originally Posted by Chocaholic
With the S&P setting new highs and the Dow well north of 26k, we have a possible skirmish with Iran on the radar...over the last few days I’ve been moving some shekels out of stocks and into money market (cash).
Anyone else getting jitters or are things still rosy on the horizon? I think I know what Tabs will say...  |
Good move or bad move it all depends on your personal timeline, risk tolerance, and goals. If you have a LOT in stocks right now and only a little cash, have a short timeline where you might need cash, taking some off the top may be useful. Having 10%-20% in cash reduces short term risk but also misses some of the upside if things move quickly which they often do.
One thing is certain. Never ever move completely out of stock based on fear of imminent downturn. Emotional market timing is a great way to make a small fortune... out of a larger one.