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The Cost Of Missing The Market Boom Is Skyrocketing
Everything is relative. In my situation, I feel like I'm sitting on a pile of cash waiting for a shoe to drop. But...since I was 90% equity about 5 years ago, the harvesting of profits and allocations to a bucket 1 for several years of spending money have taken my portfolio to about 60% equity. So I guess the moral of the story is that I don't need to have 90% to have a foot in the market.
Eventually, the cost of missing the market boom will be so high that the holdouts will capitulate and buy in.
We all know what happens next. But we aren't there yet.
What do you pay attention to so you know when the holdouts are capitulating? I'm not a fan of trying to time the market or major adjustments/bets based on those kinds of things, but I would definitely adjust at the margins, taking dividends in cash as others do or taking some gains if they're close to my targets and/or need to be rebalanced.
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We all know what happens next. But we aren't there yet.