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A Chasing Sunsets Fund – A Better Way to Plan Nice-to-Haves in Financial
Independence.
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One of the spending needs that many of you would consider as part of the
income needs for your financial independence (FI) or FIRE, is to have
enough mon...
10 months ago
Uncle8888,
ReplyDeleteLOL! Yeah, the longer I am in the markets, the more I realise I don't know. Kekeke!!
Mea culpa --- I was too early in deploying my war chest (about 29% so far). No regrets on the last 15 % points though, as my contrarian indicators were hit. :P
My dual momentum portion is still telling me to remain in cash, although following this indicator to the letter will likely mean missing out on the initial 20% of the move from the absolute bottom.
For those who are patient can also use the % of S&P500 stocks above their 200DMA:
Compare this indicator with the S&P500 chart during GFC
Current picture today
E.g. wait till 15% of S&P500 stocks are above their 200DMA before going back in.
You'll probably miss 15% to 20% of the initial up move, but this is the price to pay for greater assurance that you are in a sustainable uptrend.
Although this focuses on the S&P500, but as correlations go to 1 during crisis period, will also be very relevant to S'pore & Asian markets too! :)