Fighting the market bubble

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YAEX51

New

YAEX51
Dec 31, 2021 13 Comments

Let’s imagine that there is a stock market bubble. How would you rebalance your portfolio if you knew that shit’s gonna hit the fan soon? Not asking for an opinion on how to make 100x profits on a diving market, but rather how to continue fighting the inflation with maybe 4-5% profits above it given the situation. Obviously, you can’t keep sitting in S&P500 ETFs since that what’s gonna dive first. So, what’s your plan for the dark times?

#personalfinance #investments

P. S.
I’m not saying that something bad is gonna happen with the markets soon, so don’t give me hard time for spreading fear and lies – that wasn’t the intend.

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    TasmanianD

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    TasmanianD
    I tried asking something similar but the clear verdict is you can't time the market.

    No matter what you choose to do, hindsight will allow you to see better choices you could have made.

    Until you can predict the future you're stuck with making choices using incomplete data.

    Guess and pray ;-)
    Dec 31, 2021 2
    • New
      YAEX51

      New

      YAEX51
      OP
      I don’t agree. You portfolio can at least have stocks that are not really perfoming but at least they stay more or less stable, like Walmart. Yeah, that’s maybe not the best example but simply giving up and letting the market decide your future is not a good idea. There are ways to factor in the potential bubbles. What do you think?
      Dec 31, 2021
    • Not timing the market isn’t giving up. Continue to invest in diversified index funds is all you can do.
      Dec 31, 2021
  • It depends on what you think the pop will look like:
    - pop: vix
    - trades flat forever: idk, maybe sell options
    - goes down over several years: cash/bonds, good luck timing the bottom
    - gets outpaced by inflation: materials and cyclicals, tips
    Dec 31, 2021 0
  • You leave it in SPX, everything else is timing the market
    Dec 31, 2021 0
  • Calculate your net delta if the portfolio and buy equivalent number of S&P puts at probably the 80% of current price. That will act as a hedge.
    Dec 31, 2021 6
  • New
    bodhisa₶va

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    bodhisa₶va
    shorts and puts. pretty obviously about to nuke. gl
    Dec 31, 2021 0