I put a stop loss of $265 on VTI for 25% of my portfolio. Then I hope to reinvest it in PHYS (gold) and VDC (consumer staples with some dividends).

I have a stop loss on the rest of my portfolio on its cost basis (about a 21% drop). If that happens I’d probably wait for the low via 50 day EMA crossing then buy QQQ or something high gain.

  • PrettyFlyForAFatGuy@feddit.ukEnglish
    2·
    2 days ago

    I’ve bought some physical gold and silver recently but for the most part my investments are across european/british MIC stocks.

    I have a lot of Rolls Royce, i got in very low a year or two ago and got lucky. Divested as much as i could without triggering capital gains tax this year and spread it out. waiting for the end of the financial year next month to divest more.

    the only US stock is still hold is Nvidia… and it’s not a big part of my portfolio.

    I’ve also put some money in a chinese ETF since they seem to be doing a whole not of nothing and winning atm

  • ALoafOfBread@lemmy.mlEnglish
    1·
    2 days ago

    I have a reasonable horizon to retirement still. I am cash-heavy (high yield savings/money market), I’ve been loading up on bonds to get to an allocation more traditionally appropriate for my age, and slowing down on stock purchases - will start DCAing again once things get worse.

    • artificialfishOPEnglish
      1·
      2 days ago

      While it’s good to have money to spend on stocks in my 20s I invested every penny I earned into high yield etfs. It really paid off. This could be the drop you need. At the same time a rule that has always worked well for me is never keep cash. Cash only ever goes down in value. Bonds have never worked for me either, do you really want to invest in a government that has so much debt? They are going to default someday, or worse, and the performance of bonds has not been great in my lifetime. If you are going to keep cash, put it in CDs, but IMO you just keep transferring from high yield stocks in a good economy to low yield safe stocks in a bad economy. And gold in a dangerous economy. But never cash.

      • ALoafOfBread@lemmy.mlEnglish
        1·
        2 days ago

        If you zoom out, bonds perform very well for their level of risk. It’s only recently that rates have been so bad - additionally, bonds are more than just federal government bonds. There are international, municipal, and corporate bonds as well that should be a part of anyone’s bond portfolio. Afaik, the consensus is that bonds will begin to perform better relative to inflation and the stock market than they have over the past 20 years or so. Even though yields haven’t been stellar recently, bonds are an important hedge. For instance, the market is down ~2% over the past 6mos. During that time, my bonds earned around 2%.

        My high yield/money market cash is earning ~4.15% interest per annum. So it is also performing favorably. It’s a good time to have a bit more cash in the portfolio. CD rates are comparable to HYS right now but with less liquidity. That may change, but it has been the case for a while.

        So, while I’m not selling stocks regardless of short term performance, the beginning of a market downturn is a good time to shift investing focus to hedges like bonds and foreign stock. I haven’t fully stopped DCAing into US stock, but slowing down until we’re closer to the bottom. I shouldn’t try to time the market, but I am extremely bearish due to current US economic policy and a reasonably high risk of stagflation - so there is a bottom and we’re nowhere near it yet.

        • artificialfishOPEnglish
          1·
          2 days ago

          I mean you’ve certainly thought it through. It’s just that international bonds and stocks can not be expected to perform well under a US downturn, because the US basically props up the entire world economy, being the home of most international companies and the world reserve currency and the most in debt country on earth. When the US crashes, usually the rest of the world crashes even harder. Idk bonds don’t interest me at all nor do foreign stocks. 20 years is a long time to wait and I see no reason in the future to believe that bonds will go up, every reason to see them collapse further: regime change, debt default, etc. In this case zooming out is an example of historicist bias. The future is not like the past.

          Where did you get a 4% money market? But again, inflation has been over 4% during Covid and ~3% since. Under Trump it could get worse if the USA falls out of world reserve currency status.