February 25, 2014

Investors should hold higher cash reserves

A trendless market without memory from day to day remains my best guess for the first half of 2014.

This is an ideal environment for opportunistic (and facile) traders but not a desirable backdrop for the buy-and-hold crowd.

Thus far, I have more actively traded in 2014 than at any time in recent years. My diary's strategy has been increasingly pointed toward more active trading in recent weeks. That will continue in the weeks and months ahead.

However, I recognize that active trading is not for everyone.

Most investors should hold on to above-average cash reserves in a market without memory from day to day.