dullard
Elite Member
- May 21, 2001
- 25,203
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Lots of bubbles showing up. The problem is when to sell. Too soon and you feel like an idiot, too late and you lose the opportunity of a lifetime.
With the S&P500 plowing into new record territory right now, I decided to move a small amount of my S&P500 fund and move it into a small cap fund (only ~0.5% of my portfolio). After 2 decades of tracking each other, they are now diverging. So, I locked in the S&P500 gains and bought the relatively cheaper small cap stocks.
I might do that over and over until the S&P500 bubble bursts (led mostly by the tech bubble). The goal is just to keep my portfolio in predefined ranges of each type of stock fund. That guarantees selling high and buying low without emotion.
With the S&P500 plowing into new record territory right now, I decided to move a small amount of my S&P500 fund and move it into a small cap fund (only ~0.5% of my portfolio). After 2 decades of tracking each other, they are now diverging. So, I locked in the S&P500 gains and bought the relatively cheaper small cap stocks.
I might do that over and over until the S&P500 bubble bursts (led mostly by the tech bubble). The goal is just to keep my portfolio in predefined ranges of each type of stock fund. That guarantees selling high and buying low without emotion.