Cash coming in handy

The past few months we've been advocating here healthy cash position. If you have stuck with 50% cash as we did, your portfolio shouldn't have been slaughtered, but instead the past few weeks should be bringing some excitement for us being given the opportunity again to re-enter the favorites at good prices.

So, when is the right time to enter again? If you want to be ultra-safe and if you have time, you have to monitor daily the foreign-selling. It must abet and turn into buying in majority of stocks, and not just select few. Do not be tricked into buying a particular stock being bought by one foreigner only (like JPMORGAN) and then being sold by two or more (like DEUTSCHE and MACQUAR). At least three must be buying again.

We are being told thogh that the sell-off today could be in preparation for the US Fed's upcoming rate increase. If this is the case, and again if your method is ultra-safe, you'll have a lot more waiting time to expend. Remember--the foreigners can bring down our market by -20% in a few short weeks.

But if you mix-in some value investing in your style, as I do, you should be placing one-tranche buy now on favorite stocks. MBT at 82, TEL at 2600, PGOLD at 35.5, FLI at 1.65, SECB at 140, are all one tranche buys. (Note to self: review old picks of the week). The old adage be greedy when others are fearful still applies. If you want for safety factor blended in, buy dividend paying only.

Remember the ones that paid your vacations last year. They are the same companies fundamentally that will jump back up first and deliver again another El Nido or Cebu trip and the tasty lechon to eat.