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After the horrifying terror attacks in Paris over the week end, it is inevitable that we will get a short term stock market sell off on Monday.  This is precisely why you should always have a percentage of your portfolio in cash.  Cash is a call option with no expiration date, an option on every asset class, with no strike price.

Business Insider – There could be a knee-jerk reaction in the global markets

Because I am not 100% invested in the stock market – I will not be worrying about my portfolio on Monday, panicking, or doing something counterproductive to my long term returns.  I will be shopping for bargains – hopefully buying a stock or ETF that is on my watchlist, with a substantial Margin of Safety.

Warren Buffett “Be Fearful When Others Are Greedy and Greedy When Others Are Fearful”

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Options Trading – Monday Sell Off

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