i have a roth ira, rollover ira and personal investment account with fidelity. about 40% total is in cash now and 10% in bonds. Is it best to not invest any of my cash until the market crashes? i dont mind waiting a yr or so..i figure we are close to another big crash
Why don't you carry some negative deltas? If you think you are going to be able to scoop the bottom with your remaining cash in an effort to re-coup your losses on all these long positions you should consider the possibility that it might not be that easy.
What if the market doesn't crash but instead trends down for 5 years like it has gone up the last 5.....or what if it drops 30% one month and goes sideways for 5 years...or some combination....nobody knows. Just a thought.
Remember....a lot of people that were all long into 2008 just got back to even this year.....and it took the biggest bull run in history to do it...and it took 5 years.
And look at the daily prices for the S&P through 2008-2009.....nobody knew where the bottom was. You can see where people started to go long again only to be taken out shortly after. It's not as easy as it seems.