littlejohn- the market has gotten super tough
I mean my portfolio has lost close to 20% over the last month or so. I have been lucky in PSL contest, but trying to make out in real life is super tough. I thought GERN would never break $4.50, after going to $5.50 after FDA approval was announced for their lead drug on June 8. Now the stock is $4.24. I never thought IART would break much below $30, after the CEO and CFO bought around $1.5M each around $28.50, but the stock has gone from $32 to $28, now at $29, and still sits stubbornly at a 9 PE going forward vs 25 PE going forward for the industry. So many stocks and sectors are in a bad way now for months, even if they posted decent numbers.
What should we surmise when only a handful of mostly AI related stocks are carrying the entire market, while so many sectors are suffering, and small caps are showing dismal % results on average Littlejohn, this is why I have 95% of liquid assets in fixed income at around 4.5% for 3-5 years, while only 5% in the market. By the way, I am seriously thinking about locking in half my liquid assets for 10 years at around 5% if/when I can get it.
You know, financial pros will tell you to have more in the market, as the S&P has yielded around 6%-7% inflation adjusted for 50 years or more. However what isn't pointed out is, you have to on average wait 20 years to get those kinds of returns, and in the meantime are subject to watching your portfolio go down as much as 40%-50% during any recession ie 2000-2002 or 2008 to early 2009. Thing is, if you're already 60 years old or more, why take a chance with the market anymore, unless losing half of what you have wouldn't upset you or change your life. To me the market is a vehicle when you're younger, to find financial freedom. If you ever get there, I believe it smart to take it out, get the highest interest rate you can, and only leave in what you can afford to lose half of.
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