Cash Percentage Poll

[wescobrk]

With the Europeans going on vacation in August, Soros' prediction of crisis coming to a head within 60 days, fiscal cliff and possible debt ceiling standoff in Nov, just curious what percentage everyone has in cash?

Any comments on mr. Market becoming extremely bearish within next 60 days? I know a bit silly to predict such short term but I'll still pose the question.

[beerbaron]

Probably around 30-40% cash, I have been at that level since January. Not trying to time anything, just could not find a great deal to load up on. All I bough in the last 8 months was some additional ALS.TO at 10.30$ and BK at 20.20$.

 

BeerBaron

[giofranchi]

My firm's capital right now is allocated this way:

22% Fairfax, which is fully hedged

5% Gold (who knows? just in case!)

36,5% other long positions

36,5% short positions

 

Of course, my hope is that in a rally the long positions outperform the shorts; and, if the markets plunge, the opposite should happen! I know... it never works that way!! But David Rosenbreg has recently said in a WealthTrack interview that he expects volatility to continue in the markets. He said that the tug-of-war between the secular forces of the 3D (deleveraging, deflation, and demographics) and the actions of all the central banks around the world, which try to reflate the economy, will keep the markets very volatile.

 

It might be “heresy” to long-term oriented value investors, but it seems to me that a continual rebalancing between the amount of capital in long positions and the amount of capital in short positions is an effective and, most importantly, safe way to take advantage of this extreme volatility.

 

Ok, now I know I will be banned from the The Berkshire and Fairfax Message Board… the right punishment I deserve!!