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Here's a statement of the obvious: The opinions expressed here are those of the participants, not those of the Mutual Fund Observer. We cannot vouch for the accuracy or appropriateness of any of it, though we do encourage civility and good humor.

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How I interpreted the suggested strategy in David's June commentary I thought there was a strategy

Do NOT be fully invested regardless of your ability to handle risk and have a strong risk tolerance
If you wish to Invest new money in equities(even in your 401k) use moderate or conservative allocation funds
In Taxable accounts reinvest dividends in money market or short term bond funds to gradually reduce risk.
Don't buy the dips till a bear market type drop.
Don't sell your Sequoia Fund, FPA Crescent or similar
Did I miss anything significant or misinterpret?


  • There was indeed a lot of caution in David's commentary.
  • i tend to agree. but, what about your healthcare funds? sell down those, too?
  • @linter, I would not sell healthcare if you have large gains. If you have multiple funds, select those that need pruning from the portfolio. Good time to get rid of any under performers. If we get a good 10-20% correction then you would have buying opportunity.

    I believe healthcare would recover quickly from any down draft.
  • Add it to the "Don't drive fast advice" and not the "pay Attention when drive advice"
    Pick your Advice.....
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