re: 28% correction - is it worth getting out If it was a good...

re: 28% correction - is it worth getting out If it was a good move to sell out everything at a possible top...( Not knowing for sure and where and when the bottom )

Let's see what happens if We all do So...

OK We need a signal maybe a model of fundamental and technical factors to ring the bell and let us all know..

Then We could All ( everyone who owns shares ) sell..
And those who don't hold shares could sell as well ( sell short )....Hmmmm.... Something Not right here... OK

We have to leave enough people out of the loop to ( maybe warren buffet types who are not big on timing ) take the other side of the selling .... OK We all sell ... And prices fall and then.... When we go back to buy.. We find all these buffet types holding and No stock at the attractive prices to buy....

maybe the key is to have a good allocation to start with .. That took profits already on the way up... And ready for bargains on the way down... ....

Buying weakness selling strength....And always be ready for opportunity...

Interesting too Zen... That If you are still allocating capital towards investment over that next 10 years... The lower prices going forward will probably increase the returns than if the correction never happened...

maybe cash should be a large component of every portfolio.... Who can see a bird flu scare ( for eg )
Maybe spiking mkts down a large amount...

IF you are margined up to the gills No good...
But IF cashed up. ???

Again start with good allocation strategy and go from there.... Then add a more discretionary timing element
As another layer ( maybe )

Then tops and bottoms are just profit generators..

A work in progress......

Just think We go back in time and tell everyone to sell

the day before the 1929 crash.... We convince everyone
to make sure NO ONE holds any stock going into that black day.......... And that will work ? ....

From the quote on your posts,,,I think you would appreciate... Chris Leithner's book

The Intelligent Australian Investor

Page 55 The bizarre cult of unrealised capital gain and
"phantom wealth"



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