Summer of 2016 on the beach during 4th of July week While serving a year long non-compete (& given a bit of small time golden parachute on way out w/ RSUs & severance etc etc) I remember happily plucking away @ my newly created “f**k it portfolio” that I opted to trade in w/ no regard for risk or common practice- purely gut, & why not? Had IRA/401k/whole life policy all merrily working away in a metered risk adverse manner. The world was gonna end when Trump got elected, remember?
yeah well it didn’t. And it sure as shit ain’t gonna end from this virus, & while the whole world burns these facts remain certain- while certainly beleaguered, the US has the strongest economy by far in the world, w/ oil plunging, the rest of the world economy still playing catch up, record high job growth & unemployment rates in US, negative interest rates in the rest of the most “safe haven” countries, consumer confidence, GDP, bank balance sheets, productivity, PMI - all of it is strong/solid. There is no better place for $$$$$ to flow then into US banks, US real estate, US bonds - and yes, b/c greed is both good & inescapable - into US equity markets. As they say- this too shall pass.
I dropped $50k in dry powder mostly on 2-28 & 3-9 fairly evenly dispersed through my current holdings aside from picking up some new REIT & a couple other high divvy paying investments @ low valuation. Sitting on what amounts to 15% cash in dry powder still in the account & willing to deploy another $20-25k if it looks like we’re really heading toward a 18k (hell maybe 15k!?) Dow - why? Because I’m 39, healthy, have 2 young boys & I don’t wanna work past 55.
take these massive dips to continue cost averaging down existing positions while picking up some quality names along the way during this roller coaster ride & 9-18 months from now you’ll be sitting pretty.
Just as sure as the sun will set, we all will die, & Trump will never stop hitting the tanning booth- the market WILL hit 28k again & beyond.
note: if you are over the age of 60 I’d say tell me to go pound sand & also lock yourself up in your house & hope you moved over to hard cash, bonds, gold before the shit really hit the fan!!!