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Arun Menon's avatar

Agree with the euphoria while there are so many dark clouds out there.

What is your view and data show about a philosophy that one should still stay in the market and participate with caution, not get out and keep waiting in the sidelines?

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Sanjiv's avatar

In general I agree. Charlie Munger said You should never unnecessarily interrupt compounding. I have observed US valuations were high for 18 months but was fully invested all of that time so that is my default option. I feel however valuations now are very high and risks have increased with higher bond yields and the prospects of tariffs in the US. I do not want to be too greedy. It is to do with age too. The younger person can take more risk and stay invested. I will watch valuations closely and re-enter the market when I find good companies at cheap (er) levels . I am 28% cash so 72% is still in good companies. If market goes up progress will continue.

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