Hi guys.
So......should the market correct soon, say, 10 to 15%, what would you do? Do you have a list or are you going to cry to momma? Do you believe we're going higher after, or are you scared and looking for a blanket? Where will you add or put new money to work? I want your best two (2) positions. Where are you going to make the big money, and why? Remember, liars will be bitten on sight. We aim small and bite big.....longneck wisdom, again. Anyway, guys, what you got?
God bless
the Pudd
p.s. Me? I'm putting money into the index for a short ride, then sell later.
Comments
You noted:"p.s. Me? I'm putting money into the index for a short ride, then sell later."
Index, and that would be which/what ???
A market that never corrects is supposedly an unhealthy market.....but this market is on its 10th bypass and still running marathons. We don't even see many down days anymore. Perhaps "this time is different".
As to my 2 best positions to put new money to work in a correction, an index such as VFIAX would be coupled with either JAGLX or FBSOX. Then FERGX or MEASX is third.
A thought ... Something to buy during a selling stampede.
I don't own this etf ... but, a good number of my buddies in my local investor exchange group do.
It's ticker symbol is FTCS ... First Trust Capital Strength ETF. Below is it's fund report.
https://www.ftportfolios.com/Retail/Etf/EtfSummary.aspx?Ticker=FTCS
It's an interesting fund that repositions quarterly.
Hope you're doing well.
Sooner of later, the market is going to correct and in this day and age (particularly living in Hawaii) WTF knows when some Black Swan will pay us a visit. That said, the trend line is still positive over the proverbial Long Term assuming we live that long. In addition, I don't see any sort of viable alternative to the market for any sort of reasonable yield. Therefore, in the absence of some sort of EOTWAWKI event where we all end up fishing from Peter Lynch's bridge, any hiccup is a buying opportunity. I bought thru payroll deduction after Black Monday and thereafter every opportunity. For this reason, I always have some cash on hand in my accounts. Always.
In my main account (TRP) I've got about 2 units in RPSIX just for such a buying opportunity.
For more extreme events, it's all about being in an overall state of preparedness. I will repeat for the 50th time about Baron Rothschild the Elder saying to be prepared for economic uncertainty, one should have 1/3 of their assets in securities, 1/3 in real estate and 1/3 in rare art. One could define the latter in other ways, but it's not Beanie Babies. When I first ran my numbers I soiled my monitor. Over the years I've made changes and still don't approach 1/3 - but's it's better.
good luck,
and so it goes,
peace,
rono
if not already filled with Hawaiians.
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@Puddenhead, @Catch22 said: Sounds like a reasonable question, which I don’t think you’ve answered yet. I’m confused on that point as well. I also wonder where the “dry powder” to buy on some future dip is going to come from? (1) Have you been raising cash lately? Percentage stashed away? ... Or (2) are you timing various market sectors - fully invested now, but looking to shift from current equity holdings into some different ones on a dip?
Thanks for any clarifications.
In short, work the market by not letting it work you. Have a plan and follow it; but, be flexible and revise when warranted. Most of all I tray to stay calm knowing I've got cash and I can spend my time on finding buys while others are looking to see what they must sell perhaps to meet margin calls.
The index I'm looking at right now is the S&P 500. Mids and smalls are not the market movers right now. Best bang for the buck is big caps. Also, look overseas if they fall with us. Japan is my favorite......has been for a while. Right now I'm 20% cash. How long will I hold the index? It's not how long but how greedy I am.....no, I'm bullish. I think we go higher. Also, I own no ETFs right now. I want to play in the sandbox I know....mutual funds. Guys, you got to believe it ain't over 'til the fat lady sings, and, right now, I'm sitting here with the shotgun......and some longnecks.
God bless
the Pudd
p.s. Hank, tell the Hawaiians to mover over so the Japanese can get in, too. And I'll try to get you some longnecks......lol!
Derf