We believe that having what Doug calls “dry powder” or available cash in your portfolio will be very helpful in the weeks and months to come. Opportunities are upcoming in September and October, and we think it’s a good idea to have some cash to put to work soon.
We think the opportunities that are setting up are:
- Energy
- Japan
- Precious metals
Areas that are performing very well right now are:
- Bonds
- Emerging Markets
- China
If we were to get a stock market correction, the places that might be opportunities are:
- Health care
- Real Estate Investment Trusts (REITs)
- Technology
In the old musket days, “dry powder” could be the difference between success and failure, and we believe that it’s still important to be prepared today. There’s nothing wrong with having a little cash available to take advantage of these opportunities or others, and keep listening to the podcast and reading the blog in the coming months to stay abreast of the market action.
