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Re: OLD NO.7 post# 81

Wednesday, 12/15/2010 11:38:34 AM

Wednesday, December 15, 2010 11:38:34 AM

Post# of 289
Hi Larry

>>>> I don't think there is any harm in using a pool of money as cash for multiple holdings <<<

The harm is in thinking that because your assets are NOT correlated that you can have less total cash (20% lets say instead of closer to 50%) . When (not if) stocks go down and different asset classes become more correlated (2008 anyone) you won't have enough cash to keep buying as your investments drop in price.

Toofuzzy

Take the road less traveled. It will make all the difference.

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