Originally Posted by Dr. G
30% damn! I'm gonna stick to my age old strategy of just waiiiiiiiiiiiiiiiiiting everything out.
I had been holding those positions I sold yesterday for about 2 years, no idea why I made such a quick decision yesterday to unload.
You were scared and panicked. Never panic...it's only money and nothing lasts forever, especially in this market. Don't like it? Wait a day..(see today).
I have reversed and become a bear, but not with the conviction that I will short this market. I've been selling my winners on the up days to raise cash. I'd rather just watch with now 75% cash and 25% value stocks I can hold for a while. CSCO is turning out to be a good call (I was buying all the way down to 13.50) and you might even warm up to financials if you can take some short to intermediate term pain and dollar cost average.
I recommend XLF or IXG. IXG is a global financial ETF and only has about 10-15% European exposure. It is down 58% over 5 years while XLF is down 65%. I realize that doesn't sound good, but you have to think financials will stabilize somewhat in the next 5 years when the housing market recovers.