InvestorsHub Logo
icon url

Surwin

03/30/20 5:40 PM

#24222 RE: PennyWorld #24221

When the market is falling cash is never dead money it is always king, since most are selling to raise cash and to meet margin calls. It is a viscous cycle of selling to meet margin calls and forcing the market lower which then forcing even more margin calls and further selling. So as you sell to meet the margin call you end up driving the market further lower forcing more calls and more selling. Like I said it is viscous cycle. It is those that have been sitting on cash waiting for the right opportunity that are in the cat bird seat. So cash is only dead money in a raising market, but king in a falling market. That is when the timing comes to play in determining when to buy back in. I never predict the bottom so I always average in a little at a time making sure I am ready if the market takes a further dive. Therefore I like to hedge my buying with a greater ratio of cash to purchases, until the market is in a confirmed reversal which can take a lot of time. Just my style of investing!