[buzzy]

Originally Posted by l2ridehd

I agree it is a mechanical timing but rarely executed. Think 2008. I hit the 10% once in 2011, but it happened fast and recovered above it before I sold. I put this in place in about 2002. So far 2008 is the only time I had to implement it. Did both in 2008, the 25% and 50% move from equities to cash. Kept 50% of the equities in place through it all. However also bought back in based on the 10% and 20% rise so was totally recovered by the end of 2009 where most people it took until mid 2012. It works only as a safe guard against huge negative swings in the market. Look at it as a stop loss order on stocks that I self manage using index mutual funds. It is a small part of a total investment strategy where I will sustain only a 15% portfolio loss of income with up to a 50% market decline. I also have a pre-defined bond strategy based on interest rates, but a little harder to explain.

Makes sense, thanks