Who's Pulling Out?

[william the wie]

A lot of people are getting into cash, I was wondering how many.

Really. You have to wonder why? Why?

The more money that gets pulled out of the market the less I have to pay for dollar of dividend yield, covered option premiums, growth and margin of safety.

 

[rdean]

I think the fact Republicans are always looking and hoping for failure is one of the reasons all their policies fail. They don't even try to make something successful.

 

[gipper]

A lot of people are getting into cash, I was wondering how many.

Really. You have to wonder why? Why?

The more money that gets pulled out of the market the less I have to pay for dollar of dividend yield, covered option premiums, growth and margin of safety.

I misread your post. I thought you were questioning why people are going to cash, rather than how many are going to cash. Seems to me the average investor always gets burned in a down market and then misses out when the market goes up.

 

[saveliberty]

I was out prior to the drop. Bought in too early, but my recovery will be much faster than most. All of the drops in the last several years have lasted only weeks or less. It will be interesting to see what happens this time.

Cashing out now just guarantees a loss.

 

[Luddly Neddite]

A lot of people are getting into cash, I was wondering how many.

Really. You have to wonder why? Why?

The more money that gets pulled out of the market the less I have to pay for dollar of dividend yield, covered option premiums, growth and margin of safety.

I misread your post. I thought you were questioning why people are going to cash, rather than how many are going to cash. Seems to me the average investor always gets burned in a down market and then misses out when the market goes up.

This. ^^

A lot of people are getting into cash, I was wondering how many.

OP and others = what would be the point? Where would you put your money if you sold your stocks? How would it give you a bigger return than the stock market?

No way would I sell just so I could put it under my mattress.

One's decision should be based on only on projected return but also on your needs. I'm retired but if I were of a working age, I would be buying real estate hand over fist. Especially now. If a pub gets into the wh ...

 

[william the wie]

I was out prior to the drop. Bought in too early, but my recovery will be much faster than most. All of the drops in the last several years have lasted only weeks or less. It will be interesting to see what happens this time.

Cashing out now just guarantees a loss.

true but this will be a very rocky road .

India is just now starting to put in the industrial infrastructure that China started putting in 30-35 years ago so there will be about a five year gap between China sorting out its mess and India going into overdrive on manufacturing.

China used the lost decades Japanese model for industrialization only the overseas Chinese added overdrive to the mix. It look like about $100 trillion in real estate writedowns alone: more housing than people as in a family house/apt per person if not worse and actually selling at a much higher multiple of average family income that anywhere else on the planet. No one is predicting when this will crash since Japan's bubble real estate still hasn't actually crashed yet.

The US and India are the only major economies raising rates hot money is going to add a lot of turbulence to the mix.

So we are in for a roller coaster.

 

[Mac1958]

A lot of people are getting into cash, I was wondering how many.

I'm an advisor, and I'm happier than a pig in slop about all this. After a couple of years, FINALLY something is HAPPENING, there is SOMETHING we can DO.

We moved (mostly) out of stocks and into bonds, utilities and cash (TLT, XLU, IEF) and we're now watching areas that have taken a beating, such as energy, high yield bonds, gold, China and health care for bottoms. When that happens, we get back in, in pieces.

But some of those could really be a while.
.

 

[Rozman]

I think the fact Republicans are always looking and hoping for failure is one of the reasons all their policies fail. They don't even try to make something successful.

Let's see if I have this correct....
I am starting to get the feeling that you don't like Republicans.
And Democrats have been sent by the God's to rule us with wisdom and benevolence.

Am I close here?

 

[william the wie]

A lot of people are getting into cash, I was wondering how many.

I'm an advisor, and I'm happier than a pig in slop about all this. After a couple of years, FINALLY something is HAPPENING, there is SOMETHING we can DO.

We moved (mostly) out of stocks and into bonds, utilities and cash (TLT, XLU, IEF) and we're now watching areas that have taken a beating, such as energy, high yield bonds, gold, China and health care for bottoms. When that happens, we get back in, in pieces.

But some of those could really be a while.
.

With energy I'm looking at depletion rates of SWF reserves and pipeline construction. It look like ever shorter feast or famine cycles in the oil patch.

 

[MarathonMike]

No, we've been mostly in cash and land for years so we won't pull out of the stocks we have. About half the stocks are DRIPs that we've also had for many years. If the market really takes a crap i.e. another 15% down, we will move more into stocks.

 

[sjay]

No, we've been mostly in cash and land for years so we won't pull out of the stocks we have. About half the stocks are DRIPs that we've also had for many years. If the market really takes a crap i.e. another 15% down, we will move more into stocks.

What difference does it make whether your stocks are accumulated through Drips or not,either your investing is long term or short term.

 

[MarathonMike]

No, we've been mostly in cash and land for years so we won't pull out of the stocks we have. About half the stocks are DRIPs that we've also had for many years. If the market really takes a crap i.e. another 15% down, we will move more into stocks.

What difference does it make whether your stocks are accumulated through Drips or not,either your investing is long term or short term.

I was answering the OP and making a distinction between DRIPs which by definition are buy and hold instruments and stocks I buy and sell through my brokerage account. You can be a long term investor and make short term re-allocations, you don't have to be either/or.

 

[william the wie]

No, we've been mostly in cash and land for years so we won't pull out of the stocks we have. About half the stocks are DRIPs that we've also had for many years. If the market really takes a crap i.e. another 15% down, we will move more into stocks.

Sounds good.