My wife and I had $1.5 million in shares before the GFC. "Hold on to your shares", the pundits on those TV financial shows said, "They will go up again in a year or so."
Well, our holdings descended to less than $600,000 and eleven years later we are back to near where we started at $1.6 million.
At age 79 and 77, we can’t afford to go through the trauma of another crash, so have in the last couple of weeks moved to 60% cash and 40% shares. If the shares crash now, we will lose on 40% but gain on 60% if we buy back in when we think they have hit the bottom.
What motivated me was reading
"Buffett Indicator: Where Are We with Market Valuations?"
https://www.gurufocus.com/stock-market-valuations.php
Also page down to the link on this website to Shiller adjusted P/E
Combined with the inverted bond yield and the weird low/negative interest rates plus the trade war, I am more interested at my age in protecting my capital than ever.
Cantankerous James
