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Old 04-02-2014, 09:06 AM   #21
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Old 06-30-2014, 07:12 PM   #22
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Originally Posted by keegs View Post any event, it may not be a bad idea to have some cash in your portfolio for when those opportunities show up...
Unless the opportunity you're waiting for doesn't show for a very long time...

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Old 06-30-2014, 07:19 PM   #23
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My 10% cash pillow helps me sleep at night. You have to have money at the bottom to buy at a bottom.
"A man is a success if he gets up in the morning and goes to bed at night and in between does what he wants to do" --Bob Dylan.
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Old 06-30-2014, 07:56 PM   #24
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In my taxable account's stock fund, I switched my dividends and cap gains to cash (to my local bank's checking account) to determine what to ultimately do with them. Back in April, I did this because I needed a small cash infusion to cover a small spending spree going back to last December. But upon further review, I decided to make this more than a one-time change, maintaining the cash option. Usually, any excess dividends not needed to cover expenses go into the big bond fund so it looks like that is where these stock fund dividends will end up.

In my IRA's stock fund, I still reinvest the dividends and cap gains back into the same fund but in the IRA I make more frequent rebalancing moves so the reinvested money may get moved to the IRA's bond fund at some point.
Retired in late 2008 at age 45. Cashed in company stock, bought a lot of shares in a big bond fund and am living nicely off its dividends. IRA, SS, and a pension await me at age 60 and later. No kids, no debts.

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Old 06-30-2014, 08:20 PM   #25
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No change- stay the course!
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Old 06-30-2014, 08:57 PM   #26
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+1 I have confidence in my 60/40 AA and am staying the course.
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Old 07-01-2014, 07:46 AM   #27
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Following our AA. But mostly new money in equities has been going into various international funds which have lower valuations.
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Old 07-01-2014, 08:06 AM   #28
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Originally Posted by John3754 View Post
Unless the opportunity you're waiting for doesn't show for a very long time...
I think you've hit it on the head. Some of the posts are from early 2014, and some from April. So, if you have cash and are waiting for something to become less expensive, your cash is still not doing anything for you.

I've taken some of the cash that's been building for us, and will soon get into positions on specific companies I've identified for trades.
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Old 08-20-2014, 08:12 PM   #29
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Originally Posted by keegs View Post
Have you you changed your investment strategy, stayed the course?

I started putting new money into cash.
If your asking is the equity risk premium is still there, then yes. If I assume you're investing in smart cash equivalents (high paying savings accounts, CDs, or IBonds), then you're going to roughly keep pace with current inflation, if not slightly lag it, at worse.

Even at current prices, US stocks should pay on average ~ 2-4% real, depending on the valuation metric. If you're willing to consider foreign stock, including emerging market, you can maybe add a couple more percent to that taking into account depressed foreign stock valuations.

In short, stocks (especially US) likely wont pay what they did in the past. But at current low interest rates, it'll still beat cash, long-term. I'm going to side with Warren B. here per his interview in 2013, that bonds (and I'm assuming he include cash) are just plain lousy investments. These are best used to park money that will be spent within 5 yrs.

Stocks, essentially have to pay more than cash does. Otherwise, no one would buy them.
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Old 08-27-2014, 12:08 PM   #30
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Originally Posted by Moneygrubber View Post
Anyone use the paid version of Morningstar for stock and fund analysis ? I am thinking about getting a subscription .
Do you have a brokerage account? I get a lot of the Morningstar data for free by grace of using Fidelity. I wouldn't be surprised if others have it as well.

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