I’ve been debating over the last couple days if now is a good time to start buying stocks. Its starting to look like the bottom is near and values are very attractive but the stock market still has a lot of risk left and more downside potential.
With that said, I think some small changes need to be made to the portfolio as no one can time the bottom of the stock market. The portfolio is currently very conservative with a large position in cash and the QID (Ultra Short NASDAQ 100). Now that we are in the depths of this down turn we are going to start selling off the QID and putting the extra cash to work. This will start repositioning the portfolio to take advantage of the great valuations that can be found in the stock market.
These are scary times and a hard time to buy stocks. But it’s also the time to take advantage of stocks that are on sale. The stock market will recover sooner or later and buy in now will provide a great reward in the long run.
Market Flavor Portfolio Changes
Sell 4% of the QID
Add 2% to CEG
Add 2% to BG (New Position)
Click here to view the portfolio.
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Comments (2)
How long do you think the short position is good for in anything?
Posted by J.POOLE | October 25, 2008 6:40 PM
Great question, especially considering the current state of the economy. I feel that we are nearing the bottom of this dip and it's best to start selling the QID now as it’s been up 101% since I added it to the portfolio. There is no way to time to bottom and I'd prefer the have the QID position unloaded before the market bottoms.
Posted by Market Flavor | October 26, 2008 1:29 PM