A few weeks ago I made the call privately by e.mail to a couple of good mates that I felt strongly that the market felt like it wanted to have a good old fashioned 10-15% correction. I have been over 70% cash for a few weeks now and I'm in no hurry whatsoever to reinvest !
With one or two exceptions it is very ugly out there and there's real sustained momentum to the downside.
As I posted last week, I seriously wonder if 6500 is on the cards for the NZX, that would amount to a 14% correction at the thick end of my expected range but with the amount of momentum and the fact that overseas shareholders hold about 50% by value of the NZX and with the RBNZ widely expected to lower the OCR next month its certainly understandable why overseas investors are worried about a declining Kiwi ! They appear to be shooting first with the sell button and asking questions later which is basically what I've been doing too. Why bother pushing back against a rolling train ?
In my view capital preservation is the name of the game right at the minute.