Cash

How many people went to a cash position this week? There is no question that this market has scared the bajebers out of many investors, me included. Fortunately, I started going to cash some time ago, but I did give back a substantial amount of my profit.

Your broker never wants you to be in cash. You might take it out or invest it in something else. "Don't worry, the market always comes back." Yes, and pigs can fly. Fund managers are even worse. Because I recommend selling out temporarily and going to cash does not mean I don't have a long-term program. It means I don't want to participate in a down market. CASH IS A POSITION. It is the same as owning Vanguard Index 500 when the market is going up and being in a Money Market Fund earning interest while the market is going down, but not losing your principle. Make sense?

Brokers will tell you over and over that you cannot "time the market". WRONG. Just because they are not smart enough to do it does not mean it cannot be done. I have been doing it for years and have never been caught in a bear market. Even the Federal Reserve Board published a paper saying that "market timing" works. There are timing programs or services that can be bought that are very simple and easy to understand. To protect your retirement funds you must have this in place.

In my column last week I called the market a Stealth Bear. It looks like it has come out of its den. You don't want to be around when the bear is running loose. It can hurt you.

During this past few weeks we have seen some tech stocks lose 80, 90% of their value, but how about good ole Proctor & Gamble dropping 30% in one day? That is a stock held in a high percentage of retirement portfolios and hundreds, if not thousands, of mutual funds. It is going to be a long time before we see new highs in the Nasdaq Composite and the reason is very simple. There are people and fund managers who own many stocks that they would like to sell to get "even". Know anyone like that? This effectively puts a cap on any resurgence back to the top.

I have no idea if the market is going to go lower, but the tendency is toward more selling, not buying. This is a good time to have a position called CASH.

Al Thomas' book, "If It Doesn't Go Up, Don't Buy It!" has helped thousands of people make money and keep their profits with his simple 2-step method. Read the first chapter at http://www.mutualfundmagic.com and discover why he's the man that Wall Street does not want you to know.

Copyright 2005

al@mutualfundstrategy.com; 1-888-345-7870

---

You Wont Like This

Why? Because I am going to shatter your conventional wisdom... Read More

Mutual Fund Honor Roll ? Buy High, Sell Low by Chasing Performance

Buy high and sell low -- It's not a typo.Millions... Read More

Enronization

Even if you don't own any of their stock or... Read More

Lemmings Are Gathering

Before they go over the cliff to their destruction these... Read More

No Load Mutual Funds: Investment Hype vs. Investment Help

With the internet such a huge part of our daily... Read More

What is a Mutual Fund?

Ever wondered what is a mutual fund? A mutual fund... Read More

Precision Money Management

This article describes the model of a natural relationship between... Read More

Tips to Finding Other People?s Simple Trading Plans

Did you know you can make money (and a lot... Read More

Online Investing & Stock & Share Trading: 4 Reasons Why Most Online Investors & Traders Go Broke

Are you attracted to the idea of being in control... Read More

The Secret Method to Selecting a Winning Trading System

Every successful trader has a winning system. There are of... Read More

Who Knows?

The Shadow knows. Remember him? It seems a shadow has... Read More

The Surgeon General

The Surgeon General of the United States says that smoking... Read More

The Shadow

The Shadow knows. There used to be a radio program... Read More

A Funny Thing Happened on the Way to the Stock Market

On the 40 year journey through the turmoil of a... Read More

How to Pay Less and Get More: Discount Broker vs Professional

How do you invest? What do you really pay? At... Read More

Where Is The Beef?

Where is the beef? Or maybe it should be where... Read More

Trading Tips No 5: Stock Trading Curve Drawdown and Commitment

All stock trading and investing methods must deal with the... Read More

Buying Mutual Funds

It looks like the market is ready to start up... Read More

Stealth Bull

If you have been watching the stock market at all... Read More

Two for the Money

Look back over the years and try to remember how... Read More

Maximizing a Stock Market Investment

Maximizing a stock market investmentThere are several factors an investor... Read More

Picking Mutual Funds to Outperform the Market

With over 6,000 mutual funds available, it may be tempting... Read More

Is the Stock Market for You?

Many people would like to diversify their portfolios to expand... Read More

Market Success

Who are the successful investors?There are those who follow the... Read More

Momentum

One of the basic laws of physics states that a... Read More

Stuff

I continually hear from economists, talking heads, other market letter... Read More

Paddle Your Canoe

At some time in your life you have been on... Read More

Market Globalization

Just 30 years ago the stock market was a shadow... Read More

Low Expense Ratio

One of the big advertising kicks today from mutual funds... Read More

The Exclusive Club of Large Caps

Picture one of those clubs where only the real heavyweights... Read More

NASDAQ 800?

In November of 2000 when the NASDAQ was trading at... Read More

Analysts - Do They Really Know The Stock Market?

When you become interested in a stock or mutual fund... Read More

Stock Trading Success

The ABC's of Stock Trading SuccessStock trading success...why is it... Read More