Originally Posted by
YmoBeThere
A few thoughts:
1) Frothy is in the eye of the beer holder.
2) Depending upon your portfolio construction, if tossing a position or two will help you ride out a market drop, then depending upon tax consequences, etc. IMHO, by all means do so. Investing and money can be an emotional game. If a small modification make you emotionally feel better, do what you need to do to get to a more balanced state of mind.
3) Personally, I pitched GM last Thursday and did some more position selling on Friday, Monday, and Tuesday. Sold one big winner (NVDA) and pitched some losers(mainly Emerging Markets). I went from under 1% in cash to a little over 8% in cash over the four trading days between Thursday and Tuesday. Of course I wish I had moved more, but altogether I feel pretty good about it. I may trim a bit more and get closer to 12% cash, but these are the positions that have done well over the last few years and I think the long term stories remain intact(NVDA's very well remain so, but it got super heated and I think can be bought closer to $200 than its current $240s).
As I type, tame inflation data appears to have placated the futures traders, however, without a change in Fed posture, upside is limited in my opinion.