Yes, I know there are plenty of "the sky is falling!" threads. This isn't meant to be one of them.
I'll preface my question by stating that I think there's a good chance that current market volatility will resolve itself in the next few months and the market regain its footing.
I'm -not- a sky-is-falling type, and I see the current US market condition as more likely a pothole than a sinkhole. In other words, I'm in the market for the long haul and I strongly doubt we're on the cusp of a recession or crash or anything of that nature.
That said, I know that I'm not clairvoyant.
So my question is: suppose my optimism is misplaced and we're in for a longer move down.
What strategies are those of you with significant portfolios considering if you conclude that outcome is underway? For example:
- Just hold everything, cost-average down with new investments and wait for things to resolve themselves?
- Rebalance the portfolio to include more consumer staples or other more conservative investments?
- Rebalance to include more bonds?
- Rebalance to more cash or foreign currencies? Precious metals?
- Options strategies? (buy puts, sell call spreads, sell covered calls, etc.)
- Buy canned food and ammo and run for the hills? (Just kidding on that one, I already have all the Dinty Moore I need for that scenario)
The obvious goal would be to reduce drawdowns, and ideally to also have "dry powder" for later.
So I'm interested in hearing what others who have thought this through are considering.
Submitted November 13, 2018 at 11:55AM by 1coin3lives https://ift.tt/2T9OYsP
