When volatility goes up, the “reward” for an investment should go up. In the current market, volatility is definitely up; however, I feel the expected return over the next 12 months is not high.
Since I felt my expected return from my Vanguard Total Market EFT did not justify the price, I sold all the shares and parked it in cash until things have a chance to shake out.
New Allocation: (rough estimate of IRA money)
30% - Fidelity Spartan International
20% - Vanguard Energy EFT
401k Contributions – 100% of new money is going into a diversified portfolio of equity funds. If the market stagnates (or drops) as I expect, it gives me a chance to dollar cost average into the market at better prices.