Update On My Investing
As the markets seem to enter a period of uncertainty, I’ve decided to take a step back from active stock investing. Truthfully, I lean toward the bullish sentiment in the long term, but I currently lack the necessary conviction or a specific idea to capture that view. Nevertheless, I believe this is the appropriate course of action, and I am using this moment to learn and absorb information.
To be frank, the sheer volume of information, both pulling toward bullish and bearish outcomes, has become overwhelming, leading to selfdoubt. While this feeling is normal and to be expected it also comes with a cost. Investors, especially traders, are victim to the mental aspect of investing. They will dwell on past inactions that resulted in missed gains and forget about other instances where inaction has helped. I urge you to avoid FOMO if you are feeling this sentiment as well. Watching $GOOG skyrocket over the last week was a bittersweet moment.
Right now, I am content to sit back, observe, and read everything I can. Last week , I reduced the position size of all individual stock holdings by half while leaving my core ETF positions untouched.
I recently read an article (can’t remember where or by whom) that emphasized the importance of having cash set aside for special opportunities in the market. I realized I didn’t have this reserve — I was constantly deploying every dollar I earned into new stocks or adding to existing positions.
So my priority now is to build up an arsenal of cash for major pullbacks in the market.
To help mitigate risk and maintain confidence in long-term investing, here are the ETFs I’m currently in:
