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Old 01-18-2008, 10:43 AM
darthtrader darthtrader is offline
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Join Date: Apr 2007
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Re: Recession Exposure

My Roth has been sitting in cash since early 07 when I sold all my gold and silver stocks. To me once we take the pain of the downturn/next recession, with all the ETFs and global growth there probly won't ever be a better entry point as far as money that I'll need 30 years from now.
To my mind any drawdown right now is extremely expensive if you calculate what that drawdown will cost as far as 30 years of less capital compounding. With my current understanding I'm only interested in taking the easy money. The only real place I would suspect there is easy money right now is in corporate bonds but I don't know near enough about the bond space to gamble my long term money there.
Thats basically why I think sitting in cash and learning proper portfolio theory/valuation is the best long term investment for myself right now.
I'm all over this text when it comes out next month
http://www.amazon.com/Optimal-Portfo...0464407&sr=1-1

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