In general, what do you guys think when the market dips like this? Personally, I tend to want to kick myself for not having 10% - 20% of my money in cash…sure are some good buying opportunities.
I was thinking the same thing. But you have to consider what would happen if all of your stocks were up 10% in a week. Then you would be kicking yourself for doubting your stocks and keeping money in cash. This is why Saul always recommends staying fully invested. Don’t try to predict where the market is going in a week or a month, just keep a long term view.
On another note, does anybody know why AMBA is ~ -10% today? I thought the news on drones would be good for them.
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I actually have a good amount in cash… But not sure whether to buy yet. Many of the pundits are saying we have further down to go. What do you guys think.
I bought some earlier this week… But things have dropped quite a bit since then
I tend to get annoyed at myself for rationalizing why I have been staying close to fully invested in “good companies” instead of hedging more with downside plays or reducing size in some positions to raise more cash.
Full on liquidation mode selling to start 2016… which may just be a smokescreen to shake out any retail investors who are left before we go to new highs later in the year, but more and more I think it’s smart to have some plays that diversify from simply long US equities.
The last year the environment has felt more like one where it only takes the smallest excuse to start selling. The discounts are only good if you can add enough to make up for drawdowns. Great companies will still be there, but remember, 100% gain to get to even after a 50% loss. That’s expensive opportunity cost on your money.
I know people aren’t that big into hedging here, but it can be a nice way to create additional capital to buy more in downturns. Just my opinion, and venting a bit because I feel like I am a bit off what my own opinion of the market was