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Here's how I'm handling it: - Keep most of IRA in super-broad funds like VTI. - For personal brokerage accounts, understand that the risk profile now is more
by encoderer 6y ago
Here's how I'm handling it:
- Keep most of IRA in super-broad funds like VTI.
- For personal brokerage accounts, understand that the risk profile now is more like a portfolio of in the money call options than it is equities. With much higher volatility, you can keep a portion of your account in cash, and that is the dry powder you can use when the market takes a dive.
I used this strategy before Covid, had money to buy stocks last march, and it's worked beautifully. I moved some positions back into cash over the summer. Portfolio up over 100% in 2020, even with the cash.
- deleted 6y ago[deleted]
- itsoktocry 6y ago>I used this strategy before Covid, had money to buy stocks last march, and it's worked beautifully. I moved some positions back into cash over the summer. Portfolio up over 100% in 2020, even with the cash. "Everyone has a plan until they get punched in the mouth." It's great your strategy has worked for you, but we've been in a market that has done nothing but climb for over 10 years, and the last couple of years have been absolutely insane. "Buy buy buy" won't work forever.
- jdmoreira 6y agoI'm sure you know the old saying... "anyone can make money in a bull market." And here is the proof https://www.bloomberg.com/news/articles/2021-01-19/robinhood-couple-in-viral-tiktok-discover-quant-momentum-trade https://www.bloomberg.com/news/articles/2021-01-19/robinhood... I'm sorry I don't want to sound rude but those 100% don't sound that impressive to me right now.
- encoderer 6y agoNot meant to impress, and not financial advice. Share what works for you!