The markets have proven quite resilient despite continued concerns surrounding bombs dropped in Syria and most recently Afghanistan. A failed health care reform bill wasn’t enough to derail the bull nor was tonight’s upcoming election in France, which may prove to be the start of the next great EU exit. The Dow finished Friday at 20,547, slightly less than 3% off the all-time high mark of 21,169 seen just a month earlier in March.
Despite this persistent strength, we decided to raise more cash by selling our laggard in Exxon Mobil on Friday. In our most aggressive accounts this brings our cash position to 13%.
Mother Mobil’s official stop for us was $80 however the continued weakness and fact that we were rolling into an upcoming week which may prove to be especially volatile, we decided a preemptive move was not only prudent but necessary.
My hope is that this cash position is short lived however we will not rush redeploying this but rather wait patiently for a prudent opportunity. My guess is that we will see a better buying opportunity in the coming weeks which will allow us to move back in and snatch up some bargains in our favorite areas.