Time in an investment, not timing an investment!
Volatility creates opportunity!
Investors view their investment time horizon in comparison to when they are going to retire
Your money still needs to be invested so you can keep pace or exceed inflation
Do not take your money out of investments when you retire!
Volatility is not RISKY; its the allocation that is risky
During volatility is when there is more uncertainty and perceived risk
We are NOT on the verge of a recession
There are 5 indicators for an recession
Investment philosophy and strategy
Buy discipline and sell discipline
Question: I get the idea of volatility giving you opportunity to buy companies on sale: where do you come up with the money to buy them at that point? Either you had to have money in cash in which case it ant working for you or you’re forced to sell something else that is suppose to be invested in a good business, which seems like market timing
Most people who are invested in Mutual Funds and ETFs don’t have the flexibility because their money is all invested
In a well diversified SMA, there are assigned percentages of what you want to own in any given business
Taking profits where there are greats gains
Sell a position to invest in another position
Selling a position at a loss in tax loss harvesting
Sell the high to buy the low
You put cash to work over time
Its not market timing because were looking at the businesses we want to own on sale
Can take partial profit and don’t need to have a lot of cash
We’re not looking at the “market”, most people if you’re a growth portfolio do not have cash thats why asset allocation is incredible important
August 13, 2019