I don't see how this strategy can't work almost every time.
After the record high, if market continues to go up up up, you sell out a little more at different levels of up....slowly
If market goes down enough you repurchase the stock you sold
The more volatile the market patterns are, the more frequently you rebalance
But with a 68% invested I feel good on both ends of the spectrum.
Yes! I made money today!
Or otherwise
Yes! If I were to repurchase the shares I sold, I will have more shares in total than I would have had yesterday!
But at record high I'm basically betting on there's not more up left for it to go in the short-term future and so I'm preparing for the bear market, but should it go up more by surprise, I still want some slice of the pie.
After the record high, if market continues to go up up up, you sell out a little more at different levels of up....slowly
If market goes down enough you repurchase the stock you sold
The more volatile the market patterns are, the more frequently you rebalance
But with a 68% invested I feel good on both ends of the spectrum.
Yes! I made money today!
Or otherwise
Yes! If I were to repurchase the shares I sold, I will have more shares in total than I would have had yesterday!
But at record high I'm basically betting on there's not more up left for it to go in the short-term future and so I'm preparing for the bear market, but should it go up more by surprise, I still want some slice of the pie.
Strategy when stocks are at record highs, always sell out 25-33%?
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