03-29-2024, 04:00 PM
Excellent posts.
My personal take is that my long-term portfolio is a pure buy&hold, and then I trade on the side for extra income and, to be honest, for the thrill of it.
For the long-term portfolio, I never ever sell due to market conditions. In the past I have trimmed down my buys, but even that proved to be a bad decision as I did not manage to time it right. I've also experimented with protective puts - again no joy as I didn't get the timing right. In the end it's a tough game to predict the market... really tough.
But I do always have cash on the side, either real cash or margin that I'm willing to use. If we hit a correction, then I'll just buy more... and the deeper we go the more I buy. My "purchase plan" for a given crisis/correction is always based more or less on a end-of-the-world-scenario, because I'm ok with only deploying 30-50% of my cash during the crash, but I am not okay going all in and the markets still declining from there. Again, predicting the market is a tough game, so I do not spend all my ammo early.
I agree that the valuations of many stocks are pretty high right now. But I still keep buying. I don't care. If I pick a good company, these purchases will look like a stroke of genius in 20-30 years... even if we do a -30% somewhere in between.
My personal take is that my long-term portfolio is a pure buy&hold, and then I trade on the side for extra income and, to be honest, for the thrill of it.
For the long-term portfolio, I never ever sell due to market conditions. In the past I have trimmed down my buys, but even that proved to be a bad decision as I did not manage to time it right. I've also experimented with protective puts - again no joy as I didn't get the timing right. In the end it's a tough game to predict the market... really tough.
But I do always have cash on the side, either real cash or margin that I'm willing to use. If we hit a correction, then I'll just buy more... and the deeper we go the more I buy. My "purchase plan" for a given crisis/correction is always based more or less on a end-of-the-world-scenario, because I'm ok with only deploying 30-50% of my cash during the crash, but I am not okay going all in and the markets still declining from there. Again, predicting the market is a tough game, so I do not spend all my ammo early.
I agree that the valuations of many stocks are pretty high right now. But I still keep buying. I don't care. If I pick a good company, these purchases will look like a stroke of genius in 20-30 years... even if we do a -30% somewhere in between.