Economic outlook is arguably cloudy, tariff wars are looming, belligerence is on the rise, geopolitics are shifting.
On the other hand, there are strong arguments for remaining in the market at all times - so,
what is your allocation to equities?
I will likely always have a fairly high equity allocation percentage, even though I am also a strong proponent of the concept that “money you expect to spend from your portfolio in the next few years does not belong in stocks.”
For one thing, my primary investing strategy attempts to meld dividend growth and value. The farther the market falls, the more likely that legitimate values on dividend growers will make themselves readily available.
For another, the target length of my bond ladder is 5 years, plus or minus two. I’m already pushing the 7 year side of that limit, and interest rates on quality issuers aren’t currently high enough to tempt me to keep extending that duration.
In addition, I long ago realized that in a true end-of-civilization scenario, I will likely have bigger problems on my hands than just the value of my financial assets.
Regards,
-Chuck