Can you talk about periods where you went to cash or you substantially reduced exposure?


I moved to 100% cash either prior to or coincident with or just after every bull market top since ‘90 (’90, ’98, ’00, ’07, and the ones that preceded mild bears in ’11 and ‘18). Two of these (’98 and ’00) I wrote about in my Marder Reports at the time. In ’87, before I read Bill’s book, I was fortunate enough to exit everything except one issue prior to Black Monday, when the Dow dropped 22+%. I do not recall sitting through any 8%-12% intermediate-term corrections. Since we know that growth stocks tend to correct 1 ½- 2 ½ or even 3 times the averages in a correction, corrections can easily send a portfolio of leaders down a substantial amount.