Thoughts about the current trend? Any advices are welcomed.
Markets have cycles. What goes up, must come down. Time in market beats timing the market. Dollar cost average. Buy on the dips... All ways of saying - don't panic. Unless you are planning to retire in the next couple of years, keep doing what you are doing. Keep investing, rebalance regularly. If you are really freaking out, maybe change your mix to be A LITTLE more conservative, but don't be dramatic.
Rebalance involves selling some, what do you sell? Would you sell some FANG at highs?
Rebalancing is about the mix of your portfolio. To keep your mix the same, you sell some of what is up and you buy more of what is down. It is a fairly automated process. For me, I invest mostly in low to no cost funds so it is fairly easy to do. Individual stocks is only play money - <5% of my portfolio and I don't think too much about them. They just get classified as part of my large cap stock portfolio. But if you want my opinion on FANG stocks, I think they are overvalued. But overvalued stocks go up all the time...
The stock market is controlled in large part by interest rates, which are set by the Federal Reserve. The markets are down because, given the strength of the economy and low unemployment, people are concerned that the Federal Reserve will increase interest rates.
Discounted stocks. Not a problem if you’re in it for the long haul.
I just doubled my Facebook position.
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