There is a saying, "Fools rush in where angels fear to tread." I have no illusion of being an angel but I certainly would not like to be a fool. So, I have been busy booking profits and parking money in cash. With gains handsomely over 20% during the last year and the number of uncertainties in the market, I would rather hold onto cash now and wait for a better opportunity to buy.
I have with regard to some stocks, like AAPL and MT, taken some PUT positions where an execution of the PUT would result in my buying the stock at values any sane person would consider significantly below fair values. But other than that, I am out, out of even stock mutual funds for now. And who wants to be in bonds today? I don't trust the FED can put off the bad news for too long, and Uncle Sam can't go on borrowing either. May be I will miss out on the tail end of a rally, but honestly I am willing to take that risk as opposed to the risk of losing my shirt and waiting many years to get clothed again.
The trillion dollar questions are: Will the dollar hold as the reserve currency? How does one hedge that risk that is getting bigger by the day?
I will post the results of my own research as days go by. For now, I say: let the titans and fools duke it out for now. I don't want to get trampled in the riot to come.
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