Another stock market bubble post
Everybody’s a finance genius these days. There are multiple theories regarding whether the stock market will continue to boom or is it gonna burst. There’s definitely a euphoria around that fed will keep printing money and the stocks will only go up.
I’m seeing people who have no idea about stocks asking friends how they can get started. Reminds me of 2017 when everybody and their moms were investing in crypto just before it crashed.
Although I have emergency funds aside, I don’t want to see my portfolio go down 50%. I invested in stocks for long term but wasn’t expecting to see 100+% gains in a matter of months. Just wanted to know what the seasoned investors on blind are doing. Are you keeping 10-20% in cash? Or are you trimming your positions? Have you accepted that P/E ratios will remain high and that they are justified for high growth companies?#personalfinance #investments #stocks #stockmarket
comments
For me it's currency crisis triggered by excessive printing by central banks. So my thumb rule is to keep not more than 50% in stocks, at least 25% gold/silver/btc and remaining in cash/bonds/real estate. Also, one possibility would be that stocks won't fall but rise in this scenario so having larger share in equity is pretty helpful in either case.
Which means companies will earn even MORE money and make even HIGHER profits, which drives the stock market even HIGHER. Ignore the rest of your post. This market will go on for years.
For a 100K portfolio, I will buy 35 SnP put options with a strike price of 3000 probably with expiry of December this year.