I work in financial math and understand the basics of investing. But always find the market doldrums now a terrible time to invest. Market is dropping, but things are still overpriced IMO. I find myself waiting for a bottom which never hits and have too large a cash position.
This is buffeted by a few things. I do employ a dollar cost averaging strategy and buy ETFs daily at a low dollar amount. With high interest rates I can move money into high yield safe investments, but I'm young enough to have more in the market.
In 2020 I made a killing due to cheap stocks to buy. I'd like to keep somewhat flexible to but a dip, but earn more than a HYS or CD can provide. Perhaps one option is to invest less, but in riskier assets. If I can diversify enough I have a higher beta to market at lower cost. This will keep capital free to buy low but with higher market exposure per dollar invested. Options/derivatives/an ILS (to decorrelate with market) can be a vehicle for this perhaps.
Any ideas?
Submitted March 09, 2023 at 10:39PM by actuallyactuarial https://ift.tt/J6kyQqv
