(03-05-2021, 10:02 AM)kblake Wrote: ....Question. For guys like Eric who have no cash ON hand. How do you stomach bad weeks or months like this and cant add to holdings like CRWD, CRSP, NTLA and PACB?If this response comes off as all knowing, well that's not my intent. The tech bubble crash seemed life changing at the time and caused me to do things differently.
-If you are past your first few years of investing career, then zero cash isn't a great idea IMO. I don't let FOMO and greed talk me out of this belief.
-When the market is going nutso I tuck more gains in boring stuff. Gold, short-term bonds, even utilities. If I run completely out of cash those become a second option. Do I want to sell UTE shares that are down 10% next month? Not really but I sure would if AVGO, MSFT or JNJ dipped 40% and there was no company specific reason for it.
-Nobody can time a market correction, but you have to learn to smell when it is becoming more likely than not. When an index runs straight up for 6 months without a breather, there's a clue. When gamblers completely ignore valuations and debt, and pay for earnings that might not even happen five years from now. That's a STRONG clue. It's time to prepare for the next dip. I am conservative now so when I am feeling like I am missing out, I know I am not alone and it's time to raise a little cash.
-I always stay invested, but I keep my head best I can. My port is honestly down exactly 2% off all time high. I lose zero sleep over that. I am buying good stocks 25% off the past few weeks. I can do this for a longtime but I don't actually think the market is going to fall hard for months. Someday it will though. Too much liquidity for me to think this is the end. I am worried about a year from now though. A large infrastructure bill is likely next because that is a bipartisan desire. We are pushing our luck though. There aren't enough rich people to tax to pay for all this. We legitimately grow the economy or this thing is in trouble before long.