ValueAddict’s points seem valid, and as a fellow value person, I agree with most of his points. However, with the somewhat euphoric growth expectations that the concensus is using in valuations, good value oportunities are increasingly hard to come by. Sometimes its like going over the same experiment thousands of times getting bad data, but with time, hopefully a diamond in the rough might emerge. As far as going all into cash, I just would be careful about doing a Markowitz-based portfolio as if something does occur, the correlations on which those portfolios are based break-down and the benefits of broad diversification are lost. As far as using ones savings for trading short-term, it might (and sure does) work for some, but anytime I’ve ventured into the areas of speculation i’ve been reminded why I shouldn’t.