Well --- I'm no market predictor -- and I don't "trade" the market.... but it certainly looks and feels like we're going to go into the sell in May and go away mode.
I ALWAYS hold a large pile of cash going into summer (May). Remember that I park cash in names like JNK and HYG which pay a decent monthly dividend... and most of the time - I also pick up some capital growth. I consider these holdings as "cash" - but in April I turn these into REAL cash and just sit tight waiting for stuff to pick on in August. Summer is more fun to go use the cars and trips etc - and not worry about what the market is doing.
The old saying is "you can't fight the fed" --- and I don't like to "fight" the market... and more often than not - the market takes a dump in May and stays that way until August/September.
DON'T take this as a "sell your stocks" message --- that is NOT what I'm saying. I never sell my normal dividend payers! You won't make any money with that kind of a strategy -- you'll just end up selling low and then re-buying them higher. I'm saying if you have cash -- sit tight a bit because you have MONTHS to put it to work and possibly at lower prices -- which will then YIELD more on a percentage basis in dividends.
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