As of Friday, June 5, 2020, the S&P is down only 1.1% year-to-date after a low of about 34% in March of this year according to Barrons. If you recall, it only took about a month for the market to drop to the 34% low.
As a result of the recent move up, the TradeMyTrades Market Calculator is now recommending a 20% cash position and an 80% invested position.
We adjust our cash and invested positions periodically based on market price action. A cash position reduces our risk and provides increased buying power at value prices during market corrections. This is a key function of the TradeMyTrades system and allows us to take greater advantage of market cycles in comparison to other investment methods. Because no one can adequately predict market direction, we’re never completely out of the market because we don’t want to risk losing any upside gains. The TradeMyTrades Market Calculator helps us to adjust our risk profile regularly.
Happy trading and investing
Lynn