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Good article. I also think JasonC has a valid point. Graham's article addresses questions I must consider. My investment strategy requires that I keep a portion of my portfolio in either short or long positions all the time (using a small number, 6-12, of stocks and ETFs). That part of the allocation can never be in cash. For those assets I am currently net short and will sell short into any rallies to increase the net short position. I will not revise this strategy until the Dow goes below 9500 or above 12,200. However, with a time horizon of more than 12-24 months, Jason's call is a good one.
Sep 09 10:14 am
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