I find that having rules is the best strategy, otherwise your emotions will cloud your judgement. My rules are this:
Deploy 10% of reserve cash at 10% correction (cash at 90%)
Deploy 20% of reserve cash at 20% correction (cash at 70%)
Deploy 30% of reserve cash at 30% correction (cash at 40%)
Deploy 40% of reserve cash at 40% correction (cash at 0%)
Sell kidney, use margin, etc at 50%+ correction
I’ve followed these rules pretty closely deploying about 14% of my cash reserves so far. I continue to buy with my monthly contributions from my paycheck. I was saving about 20% of monthly paycheck contributions as cash, that is being fully deployed now.
So far all investments during this correction have been in defensive sectors like utes, staples, healthcare. If the market continues to fall I will branch out into the other sectors and hopefully get a shot at getting some of the perpetually overvalued stocks like V, MMM, AMZN, etc. cheaply.
Deploy 10% of reserve cash at 10% correction (cash at 90%)
Deploy 20% of reserve cash at 20% correction (cash at 70%)
Deploy 30% of reserve cash at 30% correction (cash at 40%)
Deploy 40% of reserve cash at 40% correction (cash at 0%)
Sell kidney, use margin, etc at 50%+ correction
I’ve followed these rules pretty closely deploying about 14% of my cash reserves so far. I continue to buy with my monthly contributions from my paycheck. I was saving about 20% of monthly paycheck contributions as cash, that is being fully deployed now.
So far all investments during this correction have been in defensive sectors like utes, staples, healthcare. If the market continues to fall I will branch out into the other sectors and hopefully get a shot at getting some of the perpetually overvalued stocks like V, MMM, AMZN, etc. cheaply.