“This is why I went to all cash yesterday ...”
I’m a full-time investor in Canadian junior stocks, mostly mining exploration shares. The idea of being able to find a bid for all my investments in one day is mind-boggling! I couldn’t liquidate even 50% of my portfolio without banging bids well below the current market.
For folks like me, the alternative to selling is buying put options and such, or stronger coffee, or cut back on the coffee. I quit a 45 year smoking habit(just to have something else to think about maybe!);^) I never really get used to the 30% swoops my portfolio suffers every once in a while, even though I’m consoled by the 24% long-term IRR.
The mispriced stocks I favor tend to be as illiqid as rocks. I have to hold 2 to 5 years typically, but I expect 3-10 bag rewards for holding these risky tickets.
Still, the ability to go to cash on any given day must be tempered by the knowledge that most of the gains in any market happen on a very few trading days out of the 250 odd each year!
I couldn’t stand being on the sidelines, personally.
I follow this area as well...