I know of several people who converted their equities into cash equivalents when markets were high but could not deploy them at the lows or even higher then from what they had converted.

This was a great lesson to the timers and reinforces the concept that it is the time in the market and not the timing that will make money.

Originally posted by EquityInv Hi All, Did anybody followed this strategy of "Holding Cash Equivalents" and converted it into big opportunities while market was all time low? If so, can you please share your experience with it.

Originally posted by EquityInv Hi All, Did anybody followed this strategy of "Holding Cash Equivalents" and converted it into big opportunities while market was all time low? If so, can you please share your experience with it.

I had the problem of being fully invested when the market fell and I had my holding in PARAL,LEAF AND TTK PRESTIGE and still I wanted to buy IVRCL at around 60 and I had no more funds and did not have the guts to part with my holdings. No regrets though. All my holdings delivered albeit to a lesser extent.

But the lesson I learnt was always to keep 10-20% for that rainy day and if that money does not earn money for me it is okay by me.

At the current market PE of around 22 I have started feeling a bit uncomfortable, although my stocks do not have such high PEs, but still when the market corrects, it tends to beat all stocks with the same stick, whether high PE or low PE. It is like power play in cricket, anything goes for a six -- good ball or bad ball. Panic knows no reason.

Originally posted by hit2710 Originally posted by EquityInv Hi All, Did anybody followed this strategy of "Holding Cash Equivalents" and converted it into big opportunities while market was all time low? If so, can you please share your experience with it. I had the problem of being fully invested when the market fell and I had my holding in PARAL,LEAF AND TTK PRESTIGE and still I wanted to buy IVRCL at around 60 and I had no more funds and did not have the guts to part with my holdings. No regrets though. All my holdings delivered albeit to a lesser extent. But the lesson I learnt was always to keep 10-20% for that rainy day and if that money does not earn money for me it is okay by me. At the current market PE of around 22 I have started feeling a bit uncomfortable, although my stocks do not have such high PEs, but still when the market corrects, it tends to beat all stocks with the same stick, whether high PE or low PE. It is like power play in cricket, anything goes for a six -- good ball or bad ball. Panic knows no reason.

Hitbhai..

Yes, I too feel that we should keep some % for that rainy days.. Even though it doesn't earn money but while market is in excess panic mode, this money literally pays full time... question is that will anybody be able to invest that 20% of cash in panic mode or it will just remain as cash for ever ? [as Basantjee gave example]

Regarding the bonds, yes they are listed on NSE and one can buy just like buying shares. I know of bonds of Sriram Transport and Tata Motors which are listed and are traded on NSE.