|The European markets falling today.|
The GIC is so small that until I started writing this post, I had forgotten that I even had it in my portfolio.
The market has been soft for awhile with very low trading volumes. A good friend, also retired, recently went to cash. He's pretty astute and I took his move as a cautionary warning about the health of the market.
Now, the markets have begun to pull back and I have begun to follow my friend's lead, but not to the same bold extent. I am converting some of my portfolio to cash.
My RBC O'Shaughnessy mutual funds no longer fit my portfolio allocation plan and I was holding them only to reap the reward of a continuing recovery after The Big Fall. The recovery seems to have reversed and it seems like a good time to bail. A lot of the economic indicators are negative and Greece is looking more and more shaky.
My Mawer World fund, one of my favourites, a little gem in my book, has also been liquidated. I can't say dumped. The O'Shaughnessy funds were dumped. (I also dumped my TD e-funds. Not a one had recovered completely since the crash and they were not paying the dividends demanded by a retiree.)
My cash holdings are now a little better than 10 percent of my portfolio. Will I sell some of my ETFs and lighten my exposure to equities even more? Maybe. I'll let you all know if I do.
If this has been nothing more than a correction, I'll take this as a chance to refashion my portfolio closer to my allocation plan. If this is a double dip, I now have the cash to take advantage of a bad situation by buying good stocks at low cost. This should increase my chances of having my portfolio make a speedy recovery.