Down day diary
At 8AM on 9/6, the market looks horrible. Or, better said, it looks LIKE it will be horrible. I mean when the WSJ has “gloom” in the headlines, that can’t be any good!
Even worse, if you’re looking at your portfolio, that wonderful feeling from just a few days ago has faded so quickly, you’re rapidly becoming nauseous.
So, a big UGH…at least for now.
Over the years, though, I’ve managed to tilt — ever so slightly — against the prevailing winds. That is, when I’m feeling wonderful…it’s time to sell. And when I’m feeling there is absolutely no hope…it’s time to buy.
However, let me throw in one caveat: I neither buy nor sell all at once. Instead, I buy and sell GRADUALLY, hopefully with my last sell near the top, and my last buy near the bottom. (Of course, it never works out that way, but that’s the plan…)
The selling part is easy. The buying part? As I mentioned in a prior post, I’ll start buying when my favs are down about 10%. When they’re down 20% I’ll buy again, but in even bigger quantities. And if they fall to say 70% I’ll likely be all in at 200% long. And, no doubt, feeling quite sick about it.