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How Would You Invest Today If Your Account Was 100% in Cash?

Posted on the 14 August 2013 by Mdelp

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This past weekend my wife and I went through the clothes in the kids closets to make room for the new back to school clothes they just got.  Seeing how clean the closets were at the end inspired her to move on to my side of the closet. 

She started by taking out each item and inspecting for any stains, tears, overall condition and if it was still in style before placing it in either the “keep”, “donate” or “maybe” pile.  Everything was going fine until she put one particular shirt of mine in the “donate” pile.  I immediately attempted to use my veto power and move it to the “keep” pile.   

I went on and on about how great and ‘80s flashback looking the shirt was. Her response, “If we were in the store today and that shirt was on a mannequin would you buy it?” “Well…no.” and so back it went into the donate pile.

Her response, however, got me thinking about our portfolio. Some of our investments we have owned for years while others were only picked up recently. If we went through each investment and treated them just like the clothes in the closet, I wonder many would be in the “hold” pile, how many would be in the “sell” pile and how many would be in the “maybe” pile?

What about that stock that we bought that is down dramatically? Previously we were waiting to sell until we broke even. What pile would that go in?

What about that stock that we have a large gain in? Would we buy more at today’s prices?  

What about you?

Are you choosing to “repurchase” the same investments you already own at today’s prices or would you invest differently?


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