Wednesday, June 12, 2013

Doing Nothing

“Sitting quietly, doing nothing, Spring comes,
and the grass grows, by itself.”
Matsuo Basho (1644-1694)

I am in one of those periods of quiet before the storm. In less than two months I will close on a new house and move to a new city. Shortly after that I will repaint and re-carpet my existing home and (hopefully) sell it at a good price.

I am ready.

I have prepared my portfolio for this day. I am at the extreme low end of my range for stocks (around 40%) because I will need the cash to pay for the move, the new house, and the cosmetic upgrades that real estate agents say are necessary to make a home; Pop!

I also think the market is overpriced and due for a correction. But I don’t know what the future will hold. I can only guess.

It is a time for me to do nothing.

That is very difficult. I always want to do something, but now is not the time. For most investors, nothing is sometimes the best action. If you are making the right amount of regular automatic additions to your 401-K and other investment accounts; if your sector balances and diversification are just about where you want them to be, leave well enough alone.

Once or twice a year is generally often enough to rebalance your investments. Of course, if you are an active investor there is no law against picking up a bargain or two along the way.

But just for today,
I need to breathe deeply,
Close my eyes,
And quiet my mind.

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