The S&P 500 is well out of correction territory for its fifth week in a row. It had an incredible 2.3% increase for the week.
My portfolios have done amazing the past several weeks and I’m starting to feel a little FOMO (fear of missing out) come over me.
This is exactly why I have a plan and stick to it. Speaking from experience, emotional investing decisions can be detrimental to your investing health.
So instead of going nuts and buying stocks, I’m looking for weak holdings in my portfolio that I can soon sell and raise for cash.
If you’ve been following my blog every week, you know that I like to keep about 25% of my individual stock portfolios in cash equivalents when the market is at all-time highs. I then put that money to work when the stock market tanks like it did late last year.
For my portfolios that I just dollar cost average into mutual funds, I decided to scale back my monthly contributions. As I mentioned in this December post, I first increased my contributions when the market was down 20%. Now that we’re close to all-time highs again, I’m dialing back the aggression.
Keep a look out in the next few weeks for my stock pick of the month. It’s going to be tough picking a stock this month since many of my ideas have already shot up so much with this market rally.
How are you guys handling the market? Share your thoughts by commenting below.
I wrote this article myself and it expresses my own opinions. I’m not receiving compensation for it (other than from Wolves Of Investing), and I have no business relationship with any company whose stock is mentioned in this article.