dgoranssons - herd management thursday, page-218

Pisces

Perhaps a bit of both, ie sell 30-60% of the shares just in case they tank to the same extent as in GFC1. Use the cash to buy whatever looks like the most likely asset to quickly return to favour. REITs also crashed badly last time and some astute investor who understood that market made a killing (or at least quickly recovered their losses.)

So the idea is to understand what you are doing in the market and have a survival plan.

I was away most of today. When I left my goldies had fallen a bit, but they later fell much more than what I had expected. I am hoping that if the market is going to fall a lot it does it gradually so that the goldies will not be too badly affected. A rapid market decline is going to result in gold shares falling along with the rest of the market. Also, once there are a lot of margin calls, people have to sell some of their gold shares anyway to meet their commitments on other shares. Also, when the market PE ratio contracts then so will the PE ratios for the components of the market PE, including the goldies, thereby reducing the prices of gold shares even if their profitability were maintained.

Good luck.

loki