Tuesday, October 29, 2013 2:59:58 PM
As ever, thanks JDerb
Here's a chart of another form of cash % indicator. Its formed by taking the S&P composite (price only) and dividing that by the CPI index figure (so a real gain share price). That's then fed into AIM (as the stock price value), with CPI being the AIM's 'cash' reserve amount.
50% initial cash, 10% SAFE, 60% Vealie, 5% of stock value minimum trade size settings, reviewed once monthly and all trades matched to what AIM indicated.
Basically that's comparing the real (after inflation) share price gains with inflation. Generally stock price only values might pace inflation over the longer term, but in a volatile manner. With dividends added in on top that provides an overall real gain/benefit from having held stocks.
As of recent, a AIM indicated sale occurred, which raises the cash reserve from 46.5% to 49.76% as of more recent (diversified cash reserve figure).
Nice to see some confirmation of sorts of the vWave's suggestion of increasing cash reserves.
Regards. Clive.
PS worth noting the near 70% cash reserve peak in late 1929 and the 0% cash during 1932 (Wall St Crash era).
Here's a chart of another form of cash % indicator. Its formed by taking the S&P composite (price only) and dividing that by the CPI index figure (so a real gain share price). That's then fed into AIM (as the stock price value), with CPI being the AIM's 'cash' reserve amount.
50% initial cash, 10% SAFE, 60% Vealie, 5% of stock value minimum trade size settings, reviewed once monthly and all trades matched to what AIM indicated.
Basically that's comparing the real (after inflation) share price gains with inflation. Generally stock price only values might pace inflation over the longer term, but in a volatile manner. With dividends added in on top that provides an overall real gain/benefit from having held stocks.
As of recent, a AIM indicated sale occurred, which raises the cash reserve from 46.5% to 49.76% as of more recent (diversified cash reserve figure).
Nice to see some confirmation of sorts of the vWave's suggestion of increasing cash reserves.
Regards. Clive.
PS worth noting the near 70% cash reserve peak in late 1929 and the 0% cash during 1932 (Wall St Crash era).
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