Seeking Alpha

When it comes to investing, procrastinators take heart, you are not alone. Even the the big guys...

When it comes to investing, procrastinators take heart, you are not alone. Even the the big guys don't always react quick enough sometimes. After reviewing his own portfolio, uber-investor Mark Mobius realized he was sitting on 30% cash, and thought, "What am I doing?.. It's time to get into equities." This inertia you see is part of a larger trend and it's going to change, Mobius says. Investors are beginning to "wake-up to the reality" that stocks are the only way to get any real returns.
Comments (6)
  • Herr Hansa
    , contributor
    Comments (3084) | Send Message
     
    A fairly deadly indicator so late into this run. While the Bank of Japan is having a sale on Yen, and money is running towards other markets, what is lacking in this market on steroids is back-up from fundamentals. Earnings are not improving across the board as quickly as share price levels are increasing. Of course there are still many segments and regions that have not rallied; I moved some funds into emerging market plays recently.
    5 Apr 2013, 06:15 PM Reply Like
  • Joe2922
    , contributor
    Comments (442) | Send Message
     
    Amazing to me to read this from Mobius, a real veteran. Chasing returns because safer interest income investments are so low and buying stocks just because hard to get a good return elsewhere, is a ticket to poverty. The main argument of the Bulls is multiples will rise, but when has that happened for long with declining operating earnings? In the grand history of markets going back 200 years, they've always been interconnected, now more than ever, and decoupling is a myth. Ken Fisher proved it with charts, data, in Wall Street Waltz, his book of 90 great charts with comments.
    Here's one market timer who went to cash at Friday close, wishing he had a few days prior:
    http://bit.ly/WpVqYk
    6 Apr 2013, 06:23 AM Reply Like
  • Joe2922
    , contributor
    Comments (442) | Send Message
     
    Forgot to mention how many companies gorged on cheap debt then gave it to shareholders to beat a potential tax increase on dividend income. Share buybacks prop up the per share numbers. Fewer company stocks are even publicly traded, under 4,000 now in U. S. It looks pretty fake to me, as Ben & his CB sheep have made all asset prices and rates artificial. Cannot print way to prosperity.
    6 Apr 2013, 06:26 AM Reply Like
  • SoldHigh
    , contributor
    Comments (1013) | Send Message
     
    Many have purchased homes to rent out, which can also be a great investment if managed well.
    5 Apr 2013, 06:15 PM Reply Like
  • rambler1
    , contributor
    Comments (628) | Send Message
     
    Until the music stops again and there's no exit door.
    5 Apr 2013, 06:35 PM Reply Like
  • HPBunker
    , contributor
    Comments (219) | Send Message
     
    People are so incredibly impatient. It's completely rational to sit in cash and wait for interest rates to start moving back up before going back into any market (stocks, bonds, REITs, whatever). Sure, you earn a whopping .25% for maybe a year, but you miss out on the correction to come as interest rates normalize.
    6 Apr 2013, 07:47 PM Reply Like
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