Quote:
Originally Posted by TomW
I'm curious. For those of us who went through B-School in the 60's, the market today bears no relation to the fundamentals we studied back then. As a financial professional, you know you cannot sit in cash unless you want to lose ground rapidly. So let's say you have to make 10% on your investments going forward, how would you do it? Don't whine, don't whimper. You have a quarter century experience. How?
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I am not out for good, just sitting it out for awhile. You are correct, all the old assumptions are out the window. I am fortunate that the majority of my money is in a 401(k) which has a fixed account that is paying 6%. Also, money in a qualified account can be shifted back and forth without triggering a taxible event. I have been successful (fortunate?) in moving money from stocks to cash and back many times in the last few years allowing me to increase my stock holdings by about 150%. I sell when I feel they have reached a temporary high, and buy back when they have reached what I consider to be a temporary low - it is not a strategy that works all the time, and is not for the squeamish, but has worked more often than not in my experience.
Here's the secret for guaranteeing a 10% return........shhhhhhh...
there ain't no secret!