Hey gang. In light of certain world events, I’m getting anxious about when/if a ‘bubble’ will pop. I know we can’t predict the market, so I think I want to adjust my investing strategy.
To start, I max out my Roth every year and am 80% invested in QQQ/SPY. I will continue to do that, and I will keep everything there. It’s currently about 30% of total my stock assets.
I have about 25 stocks in my active portfolio. Mostly tech. I started investing in 2019 and am currently up 130% all time. So, I want to narrow it down to a selection of stocks that I have the strongest conviction in. (to lock in profits and use for a potential down payment on a house if there is a crash)
Selling out of: FANNG, and most blue chip tech stocks like ISRG, TSM, CRWD, etc. (selling about 2/3 of all active portfolio)
Keeping: MSFT, MELI, NNOX, PL, SOFI, COST, JMIA
I want to keep those ones because either a) they’re my babies and have strong conviction b) moonshot potential c) confidence during recession.
Then I want to take the proceeds and invest in a high yield, secure ETF/alternative income asset like HYG until I find a house to buy. Sound reasonable? I’d love feedback
Posted by JustJoshin_69
4 Comments
Hello,
I’m a TYBMS Finance student from Mumbai University conducting academic research on active vs passive portfolio management.
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> Hey gang. In light of certain world events, I’m getting anxious about when/if a ‘bubble’ will pop.
Let’s start here. Markets *do* have downturns. Big ones. Prolonged ones. That’s not something to “worry” about, it’s something to accept as reality and plan accordingly.
Were you not aware of this when you started investing? Or what has changed?
> high yield, secure
**Risk and return go hand in hand.** You do not get big yield *and* safety. There’s a reason why it’s called a risk premium.
Sounds like it’s time to step back and figure out what you’re trying to do. Are you looking for long-term growth? Or are you looking to save for a house in the short term? Choose a clear goal and work backwards from there; the investments appropriate for each are wildly different.
Many people get a dopamine “high” from fear. It’s why bad movies about slasher and high school kids make money.
Unfortunately, there’s NO room in trading/investing for dopamine fueled decisions.
Take a look at $VIX. If it’s sittling at or below 18, you may be a dopamine junky. If it’s over 18, you are well within your rights to get concerned about massive “pops.”
If you don’t know what the $VIX is, you need to learn. Channel your fear energy into learning.
Everyone’s brain is in 3 layers:
1. Rational
2. Emotional
3. Reptilian
Fear is at level 3. And if you trade from level 3, you will feel a great deal of level 2.
Trading, Investing, etc. all require you to be at level 1.
(soapbox: OFF)
|[](https://www.reddit.com/r/investing/comments/1q6ckrg/portfolio_rebalancing_advice/)|
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|Rebalancing is about sticking to your target allocation, not timing bubbles. Decide on a schedule (e.g., annually or when weights drift 5–10 percentage points) and move money back into under‑weight areas. This forces you to sell some winners and buy laggards, which can improve long‑term risk‑adjusted returns|
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