Taking a Cash Position and Awaiting the next Dip?

[Debbie Holland]

I invest in Southern California, more specifically the Perris, Moreno Valley and Hemet areas of Riverside County. This area is one of the most volatile real estate markets in the entire country. Median home values in this area went from $80k in '00, to $400k in '06, to $140k in '09, to 320k today. Due to it's volatility, this market has been extremely good to me. However, I am seeing the writing on the wall and have taken and am currently holding a cash position. I wanted to see what other investors thoughts are about the market.

[Mike Dymski]

Are you selling your existing portfolio?  If not, holding is the same as buying at today's prices (the purchase price is irrelevant).

Some investors have been redeploying capital from value plays to cash flow plays. Their value play strategy has been executed. And then they can't put millions on the sidelines for extended periods (there have been recession posts on BP most every day for the past 5 years).