08-29-2021, 06:14 AM
(08-29-2021, 05:52 AM)ken-do-nim Wrote:Doesn't always have to be 10% but 0% means no dip buying. It's about a year since a 5% pullback so any cash seems unwise now. We can't time crashes and we have to stay invested. A 10% market dip usually means you have some 20% dips in your port. It improves my mood when I can buy some sales. Never mind crashes, routine sector rotations provide the same opportunities. Most of the buys you see on the main thread are just folks adding a few shares of whatever is down some lately.(08-29-2021, 05:19 AM)fenders53 Wrote: What were we talking about again.Oh yeah, 90% max in stocks no matter your age unless the market has recently been destroyed. That's not exactly conservative advice but it served me well when accumulating. Recency bias makes me sound foolish now. I can live with that.
10% at least in cash, wow okay.
Now is a really good time for me to start building my cash up from here on out. I reached my goal of $500/month in dividends to draw on from the taxable account, and I've got the automated transfer all set up, so my budget is a-okay. I was planning to build my cash up anyway through March of next year because I liquidated nearly $50k of company stock and I need to be ready for the tax consequences. Plus, I've been reading all these stories about the market being overvalued and due for a massive correction, which makes me nervous to say the least.
I remember that massive 3 day drop a few months back. The point isn't that it only took my portfolio about 3 weeks to recover, the point is that by day 3, everything was on sale.