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RE: So, Steemizens, What's Your Stocks Game?

in #investing5 years ago

I think buying stocks after a 10year bull run is probably not the smartesrät move. I would wait for the next big corection in the market and than diversify into different companied from many sectors. Buy cheap and sell high not the other way around.

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Then, the most important thing would be to have liquid funds when opportunity arises.

It’s awful when everything is down and you find yourself without the capital to pick things up.

I did convert most of my stocks into bond ETFs after the last correction. Taking seriously the warnings of analysts about frighteningly high multipliers (all those fancy P/Xs). But when I checked what the multipliers were before & during the last housing prices, I realized I was played the fool by all those talking heads.

If a stock's fundamentals are good, and are expected to get even better, it'll probably still be a good buy, since there doesn't seem to be any reason for a recession in the near future (next 2-3 years). And Stocks can rise quite a lot in that time.
But I'm still going to keep about 30%-50% of my funds in low(ish) volatility assets, to convert them to stocks after a bear market persists.
One thing I hadn't looked into enough, is the claim that corporate debt is at dangerous levels, which supposedly can expedite a downturn if interest rate rise, or consumer\business spending decreases too much.

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