While the markets seem to charging ahead, one cannot help but feel the froth is too much. And while there have been a lot of discussions on this forum about various stocks, I feel we also need to discuss on how to spot a bear.
I have spent only about a decade investing, and this level of optimism and euphoria is quite startling. A lot of my friends who have never invested are now in the markets thanks to the gazillion apps out there.
How do we start looking for the bears? Personally I am keeping a check on the shares I own, and for non-core stocks I intend to sell the second I am uncomfortable. What would be a better strategy?
How much to leave in?
Many of us here are long term investors, but in the end price does matter. A 50% correction in a stock can eat into your pf. Do we encash a bit, or trust our conviction completely. I am happy to ride many of my core stocks, but might decide to reduce on some of them.
The biggest problem today is that there’s no alternate asset which looks good. Unless I see a real estate potential within my investment size, and it is a steal, there’s no point, despite loans being super cheap. I prefer to add small sgbs as and when the lots come out, but nowhere close to my equity level. I am happy with my emergency fund levels, so don’t see the point of more FDs. What’s the alternative?