Starting cash levels: 5 year lows
Thinking about ways to decide cash proportions for new AIM accounts in markets other than the US (for which there is the VWave), I decided to have a look at 5 year lows, i.e. by what % would the current price have to fall to reach the lowest price of the last 5 years. This would enable the 2008/9 low, which currently influences me a lot, to be gradually consigned to history.
On first inspection it seems to work quite well. The current figure for the S&P 500 is 55%. Shortly before the 1987 crash it was 60% or more. At the end of 1999 it was 68%, got down to zero during the autumn of 2002, got up 48% in Sept 2007, down to zero in Oct 2008 and Mar 2009. The results are similar for the UK market.
The current figures for other markets are:
UK FTSE All-Share 46%
UK FTSE 250 (mid-cap) 59%
Europe 35%
Japan 16%
Asia Pacific 52%
Emerging Markets 52%
Daisy42
