re: Federal intrest rate and stock market

quote:

---

Feel free to give me more reasons to stay in the game.

---

I don't know if you should or shouldn't. I'm not a pure buy and hold guy. And I think there is a nuance between "market timing" and investing based on fundamentals. e.g. if P/E's went back over 30X like they did in 1999, I would happily exit the market and not consider it at all to be "market timing". I simply don't want to buy American businesses at 30X. Similarly, if the market goes to 6X or whatever it was in early 2009, I might go to overweight equities based on valuation.

You can also play with different parts of the capital structure at different times. If you think things are a bit expensive now, then maybe buy some securities that are senior to the equity but still give you some good upside (like convertible bonds).