CASH (CASH)

It is reckless to not have some cash on the side. We know that in the summer and fall we have some kind of correction, and it is a good time to have some cash on the sidelines, ready to strike when the time is right.

(A Top Pick May 8/17.)

Other than fertilizer stocks and gold stocks, be very, very careful.

(A Top Pick April 25/17.)

(A Top Pick June 12/17.) He is holding about 35% of his holdings in cash, which is a little on the high side.

There are overbought conditions on the NASDAQ, and there are diverging momentum indicators. The momentum is slowing down even though it is making new highs, and that is a danger signal. The 2 weakest months in the whole year are August and September. He is holding 35% in cash, which is above his historical average, because the leading sector, the FANGs, are so overbought.

For people who are comfortable Shorting, he would have no problem recommending Shorting a broader ETF of equity markets. Thinks we are in for about a 30% downdraft in equities over the next 12-18 months.

He is 36% cash. He is cautious. He does not sell everything, but he under weights stocks. He could get to 40% cash.

(A Top Pick Sept 6/16.) Currently he is very bearish, so is sitting with negative energy ETF’s and cash.

(A Top Pick May 8/17.) At this time of year, you have to be more cautious about being in equity markets. Since May 9, the Dow Jones industrial average goes up .9%, but the TSE composite went down .3%. Between the middle of June and the middle of October, you want to be even more cautious.

If you are looking at a possible significant correction between the middle of June and the middle of October, then you want to have a very healthy cash position.

(A Top Pick March 15/17.)

Markets are in a bit of a problem right now. They are going through a period in the summer where things are going to be difficult, so stick with a good cash position.

There is nothing wrong with raising a little bit of cash at this time. This will give you opportunities when other sectors do well in the summertime and you will be able to fund them.

Cash to Invest. There is no bad time to invest if you find the right companies.