𝗜𝗠𝗣𝗢𝗥𝗧𝗔𝗡𝗧 𝗖𝗢𝗣𝗜𝗘𝗥 𝗨𝗣𝗗𝗔𝗧𝗘 - 𝗔𝗱𝗱𝗶𝗻𝗴 𝗳𝘂𝗻𝗱𝘀 𝘁𝗼 𝘁𝗵𝗲 𝗽𝗼𝗿𝘁𝗳𝗼𝗹𝗶𝗼
Hi everyone, I will be adding new cash to the portfolio on the 1st of next month (June). With the $SPX500 very close and around being in official bear market territory and some stocks in the portfolio down by over 70% this year, I believe now is another good opportunity to start adding some additional cash to the portfolio.
Looking at market data going back to 1946, if we play the averages we are either at the later stages of a correction (-10% to -19.9% drop in the S&P) which on avg lasts around 133 days - we just passed that mark this last week. Or we are about 1/3 into the avg length bear market (+20% drop in the S&P) which lasts on avg 338 days - the Nasdaq already entered this territory a few weeks ago.
𝘚𝘰𝘮𝘦 𝘮𝘰𝘳𝘦 𝘪𝘯𝘵𝘦𝘳𝘦𝘴𝘵𝘪𝘯𝘨 𝘧𝘢𝘤𝘵𝘴: bit.ly/3GdjTxi
“You make most of your money in a bear market, you just don’t realize it at the time.” - Shelby Cullom Davis
Some stock prices of excellent growth companies like $NVDA (NVIDIA Corporation) and $SHOP (Shopify Inc.) are down 40% - 70% respectively. These are fantastic well-run businesses, with huge existing and growing demand for their products, have fortress-like balance sheets that can withstand any downturn and with excellent growth potential over the coming years which I believe are presenting a good buying opportunity for long-term investing.
I believe in being a net buyer of stocks over time and adding to positions at different price points and continuously adding to your investments, during up and down periods in the market, I believe this is a recipe for winning.
So I will be adding some new funds to the portfolio. 𝐀𝐫𝐨𝐮𝐧𝐝 𝟓%. You will get a system notification once it's added (in a few days once the funds reflect in my account) with a suggestion of how much to add if you want to match it for the copy.
The added cash will be used to buy some more of my highest conviction stocks that have dropped recently and also to keep a certain amount of cash available. It’s a fairly small amount, but depending on how the market moves in the coming months - coming out of a correction or entering a longer bear market - I will potentially look at adding a few more rounds of 5% additions.
𝗛𝗼𝘄 𝗱𝗼𝗲𝘀 𝘁𝗵𝗶𝘀 𝗮𝗳𝗳𝗲𝗰𝘁 𝘆𝗼𝘂?
This is completely optional.
𝗢𝗽𝘁𝗶𝗼𝗻 𝟭 Join me - if you have spare savings that you can invest and leave in the market for the next 5 years and don't need in an emergency, it's a good time to invest if you're investing for the long term. You will get a system notification once it's added (once the funds reflect in my account) with a suggestion of how much to add if you want to match it for the copy.
𝗗𝗼 𝗻𝗼𝘁 𝘀𝗲𝗹𝗲𝗰𝘁 𝘁𝗵𝗲 𝗰𝗼𝗽𝘆 𝗼𝗽𝗲𝗻 𝘁𝗿𝗮𝗱𝗲𝘀 𝗼𝗽𝘁𝗶𝗼𝗻. This is the one time where you should rather not use the ‘copy open trades’ option, as you want the full amount to be added to cash inside the copy and not be used to add to existing trades, to match my cash %.
𝗢𝗽𝘁𝗶𝗼𝗻 𝟮 Do nothing - you can ignore this. New trades I open using the additional funds may not get copied on your side and you may not get the benefits of dollar-cost averaging, you may also be slightly out of sync with my portfolio. I do try and rebalance some positions from time to time to keep them in sync.
I will post more on this and a have look at drawdowns and how to put them in perspective using one of the (maybe the most) successful investment vehicles and investors of all time - $BRK.B (Berkshire Hathaway Inc) and Warren Buffet - how has his company/fund managed during situations like these. The data might surprise you.... Show More
I agree with the fact that opportunities are there and we should take advantage.
What I don’t get though is why don’t first deploy the current balance you keep (8-9%) before even talking about the 5%?
Hope this makes logical sense.... Show More
Hey @reinhardtcoetzee , just to let you know other people that I follow have added money to their account and no notification was sent to their followers. People only got to know that the deposit had happened because they announced the percentage on their feed. If you could let us know the exact percentage... Show More