The Inimitable Tiff

We might like to think we’re at or near a bottom, but the truth is, nobody knows.

If you sell a portion of your portfolio now, however, you need to be committed to get that cash back in when the trends reverse themselves. To that end, our entry strategy is as follows:

• When a fund crosses above its 50-day moving average, put 25% of the value of your portfolio.
• When the fund goes up 5%, put another 25% in.

By the time this happens, the 200-day moving average should be well within sight, and things should begin operating in line with our normal buy parameters once again.

Note to self: if I’m ever seriously considering executing this strategy, hand it all over to my financial advisor and back far, far away. But think about when I hit that ceiling of competence anytime I get the urge to play in the market.