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  • Paul Cahoon
    Participant
    Post count: 13

    I am currently up 105% on XOP, 52% on KHC and 25% ON CAJ and E. It makes sense to capture these larger profits but this would leave me at almost 80% cash in total portfolio. Typically, I would look for the best value in stocks I don’t currently own but the best value based on recommended buy price would be KHC (which I just captured profits in). So it doesn’t seem to make sense to exit and then reenter.

    I don’t like being that much in cash when I have no plans of using this money anytime soon.p I would love to be in XOM but didn’t have the cash in time to buy it before it spiked. Any thoughts on this? Should I sit on that much cash and wait for XOM (just as an example) to dip and then buy? Or would it be better to stay invested since all of these are still good values likely to continue upward trend (even with the risk of pullbacks)?

    Thank you for any advice.

    FusionDude
    Participant
    Post count: 190

    Look at it this way. If you assume that a 10% return is a good annual return, your 105% on XOP represents TEN YEARS of returns. This means that you can sit in cash for 9 more years and not lose a thing.

    Don’t let having a lot of cash make you antsy. Look at it as anticipated opportunity. Take your profits and don’t look back.

    Sean Hyman
    Keymaster
    Post count: 7046

    I’d ensure massive profits and not worry about how much cash it kept me in, even if it was 100%. Cash = opportunities.

    In the downturn, you’ll be glad you have all the cash you have.

    It’s possible you may have missed the good opportunities in XOM, but you did darn good on the others, which more than makes up for it.

    But if XOM takes a major slam, you could always add it.

    I’d capture and ensure those massive profits on all of those.

    Sean Hyman
    Keymaster
    Post count: 7046

    FusionDude: Exactly! That’s exactly the way I think about it. Good job! I totally agree.

    Paul Cahoon
    Participant
    Post count: 13

    I see your point. Thanks. I will place orders tomorrow.

    Lee Saunders
    Participant
    Post count: 52

    Cash out today so you can cash in better another day.

    Sean Hyman
    Keymaster
    Post count: 7046

    Good job, Paul!

    Yep, totally agree with Lee.

    Cash = future opportunities

    You’ll find that many will see opportunities in the downtrend, with greatly suppressed prices but the problem they’ll have is that they didn’t prepare for it by piling up cash ahead of time.

    Sean Hyman
    Keymaster
    Post count: 7046

    BAC is in wave 5 and extended away from its major moving averages. So, I don’t know where wave 5 ends, but when it ends, it could end abruptly, especially in this environment. It’s also coming to overhead resistance and has some softening technicals in the RSI/MACD. So, I’ll let you decide what to do from there. But there’s my assessment. I think it could get killed in the market downtrend, just like any other elevated stock that’s primed for their a-b-c downtrend to follow their 5-wave uptrend.

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