Those that have not heeded earlier warning signs in the domestic equities market are urged to do so now : there simply is far too much risk to needlessly expose one's portfolio to the whims of hope and irrational enthusiasm. From the very beginning of launching my company, I have urged my clients, associates and pretty much anyone that would listen to be vigilantly cautious about the run-up in stocks. In fact, on March 5, 2014, I unambiguously stated that the conditions within the equities were uniquely dangerous in a blog entry entitled, "Why I Am Dropping Out."
The article ( http://www.jyefinancial.com/1/archives/03-2014/2.html ) cited the existence of quantifiable factors that contradicted the mainstream media's rationale for bullish sentiment, but the ultimate basis by which I personally exited the markets was discomfort. I no longer could justify laughable returns against risk leverage that grew overwhelmingly large. Further research into the behavior and velocity of market breakdowns gave me increased confidence that I was doing the right thing.
As it turns out, my timing could not have been better. On March 5, the benchmark S&P 500 closed just shy of 1,874 points. From there, the index wiggled about fairly meaninglessly between a high of 1,890 and a low of 1,840, with an average point score of roughly 1,860. For a full month, I gave my clients and my readership ample opportunity to review my analysis and to assess their own risk exposure. Many took my ideas and protected themselves, but quite a few were stuck in the tranches of normalcy bias.
Fortunately, the situation right now is not nearly as bad as it could be in the future. This means that you still have time to review your current financial circumstances and make appropriate decisions. One of the worst emotions that you can succumb to irrational hope, that the markets will magically turn around and give you another opportunity to sell at the very top.
Don't let a few percentage points force you into exposing yourself to even greater losses. Just think back to the weeks prior to the Crash of '08 : having known what you know now, would you squabble over a few points just to lose 20 or 30% valuation in a matter of days? What many fail to realize is that a 20% loss requires a 25% gain to break-even. A 30% loss requires a 42.85% gain to cover. Such large gaps are unlikely to materialize in the near future if we were to have a severe market correction.
As of now, and I mean right this very minute, the priority of every investor is to :
1. Get off your butt
2. Assess your portfolio's allocation
3. Adjust accordingly
The longer you put off this important task will only lead to further risk and unnecessary agitation. I can't stress enough how much of a favor you are providing the Wall Street albatross if you neglect to perform the above three steps.
Of course, if you like holding bags...
The article ( http://www.jyefinancial.com/1/archives/03-2014/2.html ) cited the existence of quantifiable factors that contradicted the mainstream media's rationale for bullish sentiment, but the ultimate basis by which I personally exited the markets was discomfort. I no longer could justify laughable returns against risk leverage that grew overwhelmingly large. Further research into the behavior and velocity of market breakdowns gave me increased confidence that I was doing the right thing.
As it turns out, my timing could not have been better. On March 5, the benchmark S&P 500 closed just shy of 1,874 points. From there, the index wiggled about fairly meaninglessly between a high of 1,890 and a low of 1,840, with an average point score of roughly 1,860. For a full month, I gave my clients and my readership ample opportunity to review my analysis and to assess their own risk exposure. Many took my ideas and protected themselves, but quite a few were stuck in the tranches of normalcy bias.
Fortunately, the situation right now is not nearly as bad as it could be in the future. This means that you still have time to review your current financial circumstances and make appropriate decisions. One of the worst emotions that you can succumb to irrational hope, that the markets will magically turn around and give you another opportunity to sell at the very top.
Don't let a few percentage points force you into exposing yourself to even greater losses. Just think back to the weeks prior to the Crash of '08 : having known what you know now, would you squabble over a few points just to lose 20 or 30% valuation in a matter of days? What many fail to realize is that a 20% loss requires a 25% gain to break-even. A 30% loss requires a 42.85% gain to cover. Such large gaps are unlikely to materialize in the near future if we were to have a severe market correction.
As of now, and I mean right this very minute, the priority of every investor is to :
1. Get off your butt
2. Assess your portfolio's allocation
3. Adjust accordingly
The longer you put off this important task will only lead to further risk and unnecessary agitation. I can't stress enough how much of a favor you are providing the Wall Street albatross if you neglect to perform the above three steps.
Of course, if you like holding bags...
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