And by that I mean real ones. Stock and bond owners. Not those of you who let someone else manage your money. If you do you deserve to lose it. Or those of you huddled around a few coins. Pogs. Or baseball cards in a drawer.
Would you rather the market sink back to where it was before the bump yesterday so you can jump in and buy?
Or would you rather it stay where it is and continue to build from here?
I’m torn. I’m still sitting on $800 k of my original 1.05 million and kinda wanting to spend it
I could be wrong, but I would think that your current strategy does best when there is high volatility
https://www.macrotrends.net/2603/vix-volatility-index-historical-chart
if you change to a value centric or contrarian aesthetic then there are different factors you might consider
Don't time it. Have a shopping list of plays you like over your time horizon and DCA in. If you want, buy more units on down days
I guess it depends, Both (haha). I am too lazy to do the math or any research whatsoever, but there can't be much of a difference in risk between the two scenarios, right? I don't know maybe there is, but I guess it boils down to how much that difference would be with risk/stress vs. reward. If it is a 2-3% difference but you have to turn into a lunatic to get it, is it worth that? You are going to win some and eat shit on some no matter what, so like you, I don't really know.
I had a professional money manager for probably 12 years. Nice guy, USC MBA, fired him around 2011 or maybe 2012. He never got me more than 6-7% returns in a year, and bragged about it in our year end meetings. I fired him when I decided to transfer my cash to a self directed IRA and go all in on buying real estate and funding real estate loans. He did everything to scare me into staying with him. Probably more timing than anything else but I have done much better without him.
In one of my jobs, I was a Regional VP for Home Savings of America, as part of my job I was responsible for managing the investment reps in our branches. Griffin Investments. I worked closely with them, although mostly monitoring the growth of new money coming in to the bank. I was disappointed with the level of expertise they possessed.
In other words, no one is going to watch your money like you.
Do I want the market to sink back? No, I don’t think I do. I prefer to see growth.
In real estate, I would love to see a nice crash so I can pick up some bargains. Which is the opposite of what I just said in stocks. Probably because I know what to do in a real estate crash and I have benefited from previous crashes. In stocks, I get hosed every time there is a crash 😂. I have held stocks twice with companies that went under. New Century went bk and WaMu dropped 90% before it got bought out for peanuts. Took a bath on both. They never came back. Expensive lesson learned.
Sitting on a nice stack of cash like you have gives you some great options. Stick to your formula, pick your spots, be patient. Today we are seeing profit taking in the stock market after that crazy good day yesterday. But it seems clear we are going to continue to see volatility. That plays into your strategy.