Yes, we are here again to answer the favorite question about the market and what should you be doing – buy, sell or hold? Follow your asset allocation?
Here is a fantastic tweet that I came across today.
A big, tight slap!
Now, now, before you say, “aren’t you doing the same thing, bro?”, let me clarify – we are not.
You see, we are not talking about where the market is headed, the next level in 1 month, 1 year or anything like that. In contrast, we are talking about what you should be likely doing based on where the market is now. A completely different story.
We do this so as to be able to anchor in (with all the uncertainty) and be able to make a decent decision on the way forward.
As always, we rely on our asset allocation model.
Stick to your asset allocation
That’s what the numbers are telling us to do.
If you have overshot into equity, you may redirect future cash flows to bonds.
If it is a large deviation, sell equity, buy bonds.
Nothing glorious yet simple and impactful.
The interesting thing about waiting
All good things come to those who can wait. You find several people who swear and live by this.
For some reason though, investing in equity is excluded. Which also probably demands the most of your patience. And attention (courtesy the ticker)
The world is uncertain, will always be, sometimes less, sometimes more. There will be big opportunities at times and big red flags at other times.
All said and done, stay invested and continue investing.
If you are finding it hard to take care of your investments and make the right decisions, happy to be your guide to help you invest with a proven framework and build generational wealth and meet your future financial goals, get in touch.