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S&P 500
5,554.25
(
0.20%
)
US TECH 100
18,971.20
(
-0.03%
)
Dow Jones
40,659.76
(
0.24%
)
Brent Oil
79.17
(
0.00%
)
Bitcoin
59,190.44
(
0.53%
)
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Qarel

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Qarel

Re: Toofuzzy post# 5243

Thursday, 10/03/2002 2:07:43 AM

Thursday, October 03, 2002 2:07:43 AM

Post# of 47217
Hi TooFuzzy, initially we were talking about stocks that were close to or making new highs, so the simple formula would apply. I think your formula may result in too little cash when you are near the bottom of the cycle. In your example, with a Price of 30 and a Low of 20, 24% cash is very optimistic. Perhaps simply (Price-Low)/Price would be best as a rule of thumb(!) for cash allocation, or the equivalent Low/Price for stock allocation.

Regards,

Karel

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