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Feeling like a DMT...
Old 09-01-2006, 07:41 AM   #1
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Feeling like a DMT...

DMT is of course, a Dirty Market Timer, and I have no desire to be one. HOWEVER, with the rise in stock and bonds prices over the last two months, yields are down (I mostly buy dividend paying stocks), while the yield on my savings account is up quite a bit to 5.15%. So far this year I have been pretty good about making monthly contributions to my taxable account (401k and Roth are maxed out already) but with the current situation, I am tempted to let some extra cash accumulate in my savings account until the market has a few bad days. I'm still early in the accumulate phase, and I know I should stick with my asset allocation, but it's tempting to let the cash% rise from 10% to 15% given these circumstances.
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Re: Feeling like a DMT...
Old 09-01-2006, 10:53 AM   #2
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Re: Feeling like a DMT...

Quote:
Originally Posted by soupcxan
I am tempted to let some extra cash accumulate in my savings account until the market has a few bad days. I'm still early in the accumulate phase, and I know I should stick with my asset allocation, but it's tempting to let the cash% rise from 10% to 15% given these circumstances.
Yahoo, there goes another one walking on the wild side.*

Ha
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Re: Feeling like a DMT...
Old 09-01-2006, 11:58 AM   #3
 
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Re: Feeling like a DMT...

Quote:
Originally Posted by soupcxan
I am tempted to let some extra cash accumulate in my savings account until the market has a few bad days.
If you did this, then a bad day in the Market for you would be if the Dow rose about 500 points.
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Re: Feeling like a DMT...
Old 09-01-2006, 04:41 PM   #4
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Re: Feeling like a DMT...

Yeah, I wish I knew the future too.

Nothing wrong with a plan, written plan, that calls for lesser/greater percentages in one investment or another based on relative valuations. That's what Ben Graham (sp?) said oh so many years ago.

OTOH, if its not part of a thought out plan, you'll just start chasing, and lose the benefit of time and compounding.

I really do wish I knew the future, at least of stock prices

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