RE:David RosenbergGalic1...great post!1
I must admit that I am in Rosenberg's camp albeit stemming from slightly different analysis. As I mentioned in earlier posts, the market valuation in the US is 2X the Buffet number - total market cap to GDP should be about 1:1 and right now it's 2:1. The other thing is what Rosenberg sorta touched on - we have had two back to back 20% years in the US. In history when this happened, the market suffers a big decline the following year - 1929 being the Grandaddy of them all.
So what am I doing?
Right now I am at 30% cash (same as Buffet) and when you add in my fixed income that figure rises to 48% of my portfolio. Not saying, everybody should be at that level - one reason is that most of the people here are younger than me and arrogant as it sounds - probably don't have as much money as me. BUT....the reason I am saying this is that, like Rosenberg's advice, people need to be wary of things and then make adjustments according to their own financial situation/objectives and tolerance to risk.