During the week of June 8, 2020, the S&P moved down sharply and is down -5.9% year-to-date according to Barrons.com.
As a result of this weeks move down, the TradeMyTrades Market Calculator is suggesting a 19% cash position and an 81% invested position in the market. See the Premium Services page for specifics of each TSP model portfolio.
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