With the market going sideways I’ve decided to alter some investments to establish some cash positions. I won’t be selling anything, but I am going to stop buying anything for a while and adding my contributions to a money market fund instead.
For those of you wondering why let me show you a five year chart of the TSX index with 20 day moving average.
As you can see we are now moving more sideways than up right now. With the current market I don’t see any major movement upwards for a while. I think everyone is a bit too nervous about the US going into a recession to leave their positions of gold or cash. I’ve been thinking about adding some cash to my portfolio for a while, so now seems like a good time as any.
That’s not to say that some individual stocks might be a good deal, I’m just sitting on the sidelines for the US and Canadian indexes for the next few months until after our second baby comes. After that I will devote a little time to reassess the situation.
So that’s my thoughts, what do you think? Should people be taking up some cash positions or continue to invest regardless of the current market and try to get some dollar cost averaging?