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For me - A.A. Milne states it best
#1
During a bull market when prices continue to rise investors become enthusiastic and continue purchasing “To hell with valuations”. - Emotion driven investing “Fear of missing out (FOMO)” takes over.... AND WHY NOT ? At the craps table, Every investor is James Bond and the croupier keeps paying out. Every chart continues it's astronomical ascent from left to right, in the immortal words of Buzz Lightyear “To infinity....and beyond!!!. Warren Buffett famously stated - “Only when the tide goes out do you discover who's been swimming naked.”

In the real world people buy more when products go on sale However, in the financial world people invest less. This is backwards thinking for the DGI investor. Buffett always enjoyed the Ted Williams baseball analogy - Ted Williams approached batting in a methodical way, he worked out his optimal strike zone where the odds were in his favor and he maintained the discipline to only swing if the ball was in that zone. By the time Ted Williams retired he had a .344 batting average, 521 home runs, and a 0.482 on-base percentage, the highest of all time. 

John Bogle whom one could perhaps intelligently argue has done more to help the common retail investor that anyone in the financial industry stated - Don’t pay too much heed to the daily ebb and flow of the markets. In the short run, people get excited and stocks get way overpriced. Then a sell-off happens, the stock price goes down, and that sends [price-earnings ratios] lower. The long-term investor should pay no attention to that. The stock market is a distraction to the business of investing.

Cycles are all about excesses and their corrections. The DGI investor can benefit greatly by waiting for the right pitch in their optimal strike zone rather than chase Yield, stretched valuations, and overpriced securities; and letting “FOMO” take hold and drive their decision making during bull runs and striving to grasp for "Infinity and beyond"!! .The DGI investor should ensure to curtail their emotions when multiples/valuations become stretched and act with even greater prudence to minimize risk. The less prudence with which others conduct their affairs, the greater the prudence with which we should conduct our own.- Warren Buffett

For myself when excesses in the market occur, I prefer to adopt  the Winnie The Pooh's philosophy -
Don't underestimate the value of Doing Nothing, of just going along, listening to all the things you can't hear, and not bothering.”― A.A. Milne

I believe a cup o' Joe with some nice slices of Toast and Honey is indeed in order, and awaits me in the kitchen on this cold wintry morning.
All enjoy your day,
-Scoot
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#2
Even in long bull markets there are stocks that are either fairly valued or undervalued - quality stocks.

I prefer to keep our portfolio money working.
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#3
This has been a tough few years for me. My yields and total return have been fine because my port is divided up into three diverse strategies, but I missed the bus worrying about valuation. The dividend part of my port was crushed by just about any mindless index fund. I never thought it would last so long.
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#4
Counterpoint - many of us here missed out on the greatest money making opportunity of our lifetimes in crypto, because it wasn't "in our wheelhouse". Or Tesla, for that matter.

One of the forum members I believe did get in on Shopify in the early stages.

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People forget that Ted Williams missed 5 prime seasons due to WWII and later Korea service. His numbers are amazing regardless, but would be even better had he not gone to war. 1942 he hit .356 with 36 home runs and 137 runs batted in. 1946 he returns and hits .342 with 38 home runs and 123 runs batted in. 1951 he hits .318 with 30 home runs and 126 runs batted in. He misses the bulk of 1952 and 1953 and returns full time in 1954, hitting .345 with 29 home runs and 89 runs batted in. He would go on to hit 521 home runs total, but it is easy to extrapolate that out to 150 more.
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#5
(12-09-2021, 11:18 AM)ken-do-nim Wrote: Counterpoint - many of us here missed out on the greatest money making opportunity of our lifetimes in crypto, because it wasn't "in our wheelhouse".  Or Tesla, for that matter.

One of the forum members I believe did get in on Shopify in the early stages.

****

People forget that Ted Williams missed 5 prime seasons due to WWII and later Korea service.  His numbers are amazing regardless, but would be even better had he not gone to war.  1942 he hit .356 with 36 home runs and 137 runs batted in.  1946 he returns and hits .342 with 38 home runs and 123 runs batted in.  1951 he hits .318 with 30 home runs and 126 runs batted in.  He misses the bulk of 1952 and 1953 and returns full time in 1954, hitting .345 with 29 home runs and 89 runs batted in.  He would go on to hit 521 home runs total, but it is easy to extrapolate that out to 150 more.
Good counterpoint.  Sometimes I dwell on my strike outs and forget about my homeruns.  Sooner or later there will be a few years where growth investors who got greedy are licking some deep wounds, while value investors are experiencing some solid returns.  I don't think I will ever again lean my strategy completely one way.  You set yourself up for failure for extended periods of time.  Realization that we all have some recency bias is worth some money.
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