Raising Cash: Investors Don't Need to Push it Here!

Jordan Kimmel |

This has been a great nine-month stretch for our managed accounts. As I occasionally do, I am raising cash. I see enough warning signs to encourage me to be cautious here. There is no need to push it here.



The advance/decline line on the NYSE has already begun to show weakness.The number of new 52 week lows has increased. For those who know me, you know I watch these “internals” of the market. You need to go beyond just looking at indexes. While I love the holdings in our portfolios, many are “short-term overbought”. In these conditions, in my more active strategy, we have just gone 40% to cash.

I am not expecting a huge bear market to show up here. I am looking for a summer swoon followed by a Fall recovery. Most investors say they are OK with 10% pullbacks, but are not so calm when they come. I prefer to step aside, raise some cash, and buy back in when more fear is in the air and lower prices are available again.

With our accounts at new highs, I am blowing the whistle…taking a breather and just not pushing it here. The internals suggest taking a lower risk profile. Be careful out there!

By Jordan Kimmel, Chief Investment Officer at Investview, Inc. (INVU).

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