08-23-2021, 11:28 AM
(08-23-2021, 09:35 AM)MrFortune Wrote:(08-23-2021, 08:36 AM)ken-do-nim Wrote: Revisiting this topic, I've decided to adopt a 3-tiered pyramid model, where the highest tier is speculative or triple-leveraged (SPXL for example), the middle tier is strong growth or double-leveraged (QQQ or SPUU for example), and the base tier is made up of solid performers (JNJ, VOO for example). Doing some math, the percentages come out to:
Top tier: 3.7%
Middle tier: 25.93%
Bottom tier: 70.37%
Rebalancing downwards will be done once a quarter.
Why are you buying SPXL and SPUU this late in the cycle. You have a crazy obsession with these type of stocks/etf's
What happens when the market dips big in Oct/Nov? Then what? You will be down a quick 20-25% in a blink of an eye.
Just stick with JNJ and VOO and dollar cost average in on every $10 dip.
I get paid every two weeks, which means I have money to contribute to the HSA every two weeks. So by its very nature, it is a dollar-cost average machine, and I believe that over time, the S&P 500 will continue to grow, therefore the VOO/SPUU/SPXL trilogy will work out.
I know VOO is up 21.44% year-to-date, but that doesn't mean there will be an October/November swoon. Now it is true that last October was a bad month for my portfolio, but prices now in August/September could still be lower than November 1st prices.