Keep SOME exposure during a downtrend
The market continues to struggle and is not offering any attractive entries. We continue to hold a very large cash hoard so we can be in position to scale into select names at even lower prices. The Philadelphia Fed was released coming in better than expected at 19.8 but the market is yawning.
The challenge for us is to determine what is the appropriate percentage invested that we should stay during this downtrend. Trying to strike a balance with how much we are comfortable in slipping in performance versus how much we would be willing to miss out should the market do a sudden upside reversal is always difficult to determine. The answer, of course, is subjective and largely influenced by external factors. Year to Date absolute performance, your long-term view on the market, emotional makeup of your client base, and your own current groove with the market are some of the factors taken into consideration.
During a down-trend each portfolio manager should adjust their percentage invested in accordance with their comfort zone blending the above. In other words, its not just simply an opinion of what the stock market might do next in the short-term, rather an assessment of all contributing factors for your next big move in the market. Of course, many traders are all or nothing with their percentage invested. While this might work for some money managers, your friendly neighborhood Kcap Team usually prefers to deploy a slightly more balanced approach. ___________________________________________________
The analysis, opinions and/or forecasts expressed on the Kcap Trading Blog (âKTBâ) are for informational purposes only and should not be relied upon in making investment decisions. By using this site you agree that Kleiner Capital Management, LLC (âKCAPâ) and its principals are not liable for any action you take or any decision you make in reliance on any content. Please be aware that there is no commitment by KCAP to update the KTB. Furthermore, there may be inconsistent timing and follow up (if any) of posts.
None of the information on KTB is considered individualized investment advice and should not be construed as a recommendation or solicitation to purchase any securities. Reliance on information provided on KTB in no way establishes an advisor-client relationship. Investors are encouraged to seek the advice of a qualified investment professional prior to investing funds.
Clients of KCAP, as well as the firmâs principals and other employees, may be invested in securities discussed at KTB. However, any mention of said securities is not intended to influence market conditions for the security to the benefit of KCAP clients and/or principals and employees. KCAP is not affiliated with any advertisers on this site and does not endorse any of their content. For additional information and disclosures, please visit www.kleinercapital.com.
The information on KTB has been furnished from sources we consider to be reliable, but no guarantee is made with respect to accuracy.
___________________________
The challenge for us is to determine what is the appropriate percentage invested that we should stay during this downtrend. Trying to strike a balance with how much we are comfortable in slipping in performance versus how much we would be willing to miss out should the market do a sudden upside reversal is always difficult to determine. The answer, of course, is subjective and largely influenced by external factors. Year to Date absolute performance, your long-term view on the market, emotional makeup of your client base, and your own current groove with the market are some of the factors taken into consideration.
During a down-trend each portfolio manager should adjust their percentage invested in accordance with their comfort zone blending the above. In other words, its not just simply an opinion of what the stock market might do next in the short-term, rather an assessment of all contributing factors for your next big move in the market. Of course, many traders are all or nothing with their percentage invested. While this might work for some money managers, your friendly neighborhood Kcap Team usually prefers to deploy a slightly more balanced approach. ___________________________________________________
The analysis, opinions and/or forecasts expressed on the Kcap Trading Blog (âKTBâ) are for informational purposes only and should not be relied upon in making investment decisions. By using this site you agree that Kleiner Capital Management, LLC (âKCAPâ) and its principals are not liable for any action you take or any decision you make in reliance on any content. Please be aware that there is no commitment by KCAP to update the KTB. Furthermore, there may be inconsistent timing and follow up (if any) of posts.
None of the information on KTB is considered individualized investment advice and should not be construed as a recommendation or solicitation to purchase any securities. Reliance on information provided on KTB in no way establishes an advisor-client relationship. Investors are encouraged to seek the advice of a qualified investment professional prior to investing funds.
Clients of KCAP, as well as the firmâs principals and other employees, may be invested in securities discussed at KTB. However, any mention of said securities is not intended to influence market conditions for the security to the benefit of KCAP clients and/or principals and employees. KCAP is not affiliated with any advertisers on this site and does not endorse any of their content. For additional information and disclosures, please visit www.kleinercapital.com.
The information on KTB has been furnished from sources we consider to be reliable, but no guarantee is made with respect to accuracy.
___________________________
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posted by Kleiner Capital Management, LLC. | 12:12 PM
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