Sold half my redhat this AM. Market is spooking me. Migrating to a %50 cash position to strike if the market plummets. The Sony and Coke news put me over the edge. Consumers can't prop it up without jobs or inflation and we have neither.
Yup it sucks. You know, for a while I was thinking we will be out of the woods. I was waiting for some employment pickup through the summer. Yet nothing. I rode the market momentum up but then I sat back and figured this is not reality. It's just momentum. Companies made money not by selling but by cutting jobs. Those unemployed guys are not consumers anymore. Plus all the sales and 0% interest. What was Detroit thinking by introducing 0%. They just floded the market with new autos for the next 5 years. At no, or very little gain for themselves. Things just dont make sense here.
> The Sony and Coke news put me over the edge.
> Consumers can't prop it up without jobs or inflation
> and we have neither.
People without any income are going to want free software. We'll make it up in quantity. :-)
Bought SUSE Linux 9.0 Professional the other day. Absolutely love it compared to RedHat 8/9.
- No BlueCurve
- No seperate screens for login id & password
- And I can shut down from KDE instead of having to logout first.
In short, I've got a new favorite distro and I'm preparing to switch to it (from RedHat 7.3)
I have moved to a 50% cash about a couple of weeks ago. I am waiting for good shorting oportunites. Mainly in tech. There is too much enthusiasm for buying the bubble loosers. Which brings me to my next point. I think we are looking at a bear market rally.
The growth in tech is spectacular, the rally has shown outperformance from low quality stocks, Nasdaq margin debt is at new highs. People are embracing the darlings of the dot com bust.
So for me to reinvest my gains for this year (which has been very good to me and probably to a lot of people here) I need to see sustained job growth (and not in India and China), or a very healthy market pullback.
I think you made a good healthy decision in protecting your investment.
Have you considered moving to bonds? If you really believe the market is going to hell in a hand basket, bonds isn't a bad place to be.
I'm currently something like 20% in bonds, 75% stocks, 5% cash. On the other hand, if you're just a trouble maker odds are you haven't the slighest idea what I'm talking about and will say something dumb ...
If I may add my two cents, you may also want to consider REITs (Real Estate Investment Trusts). They've done well for me through some very bearish times. They kept going up while the market was going down.
Not a trouble maker. I believe redhat is a great long play and I will be back buying probably before Xmas if my guess is right. I trade with a 401k so I play conservatively(kinda). I've made %80 percent YTD might as well go into somewhat protection mode.