V Wave
This week's readings are just over 60 for individual stocks and just over 40 for diversified mutual funds and portfolios.
Does the lower reading refer to funds and portfolios which are essentially of stocks only?
If so, is there a case for a third, still lower figure for portfolios that include substantial bond components, where these too are being AIMed? (If so, the question arises of what proportion of bonds.) Mr Lichello suggested 25% for a mutual fund that was a mixture of stocks and bonds.
Incidentally, I notice that some of the reports to this BB show cash levels down in the mid-20s. I appreciate the purpose of the V Wave is to establish starting point cash levels, but even so does this suggest some people are operating at higher than recommended risk levels?
Mike (Daisy42)
