The S&P 500 was up 0.7% this week and is down 3.2% from its all-time highs set a few weeks ago.
The big news is the U.S.-China trade war. One investor thinks that the stock market will be at all-time highs by the end of the year.
If you follow my blog every week, you know that I consider most news market noise that can be ignored. I just try to follow Warren Buffett’s advice and buy great companies at reasonable prices. As a reminder, here’s my overall strategy that I stick to week after week.
- Keep a healthy emergency fund of at least 6 months living expenses
- Keep 25% cash in my individual stock accounts when markets are at all-time highs – ready to deploy that cash in the next correction or bear market
- Keep on dollar-cost averaging in my mutual fund accounts, which are 100% stocks since I have a 20+ year time horizon
Like I mentioned last week, it looks like I might get another chance to buy on the dips. I’m looking forward to making purchases if the S&P 500 gets into correction territory (10% from all-time highs).
How are you guys handling the market? Share your thoughts by commenting below. If you like this post, share it on social media.
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.
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Donnie Nguyen is the founder and CEO of Wolves of Investing. He started investing in the stock market in the early 2000s. He follows the teachings of Peter Lynch, Warren Buffett, and other investing legends. When he's not investing or blogging, he loves spending time with his family traveling and experiencing the world.
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