The Correction Cometh
I have been discussing at www.AmericanResourceBoom.com for about a month now the growing likelihood that we would see a correction. I am not going to repeat myself here, but I will suggest to take a very serious look at asset allocations from a Ben Graham "Intelligent Investor" standpoint.
Given that we have entered the 5th year of a cyclical bull market, within the confines of a secular bear market, it is logical to think this bull is nearing an end. However, with all the government stimulus, it is also easy to think that the past few weeks volatility and today's drop is just a set up for one more leg up.
Regardless, being more than 75% in equities at this point is silly. I am about 50% equities, however, I also have some short currency positions for about 12% of portfolios with the balance in cash and global bonds.
It wouldn't be a bad thing to be all the way to the conservative edge with a 25% equity allocation for fund investors. I am at 50% because I like my companies.
Look to add EXAS as a biospec if it goes under $10. FCX, CHK, VE, WLL and POT are favorites of mine if I can get a bid.