Posted on 06/01/2022 7:31:34 AM PDT by Tell It Right
U.S. stocks pulled back Wednesday amid worries about the health of the economy, as Wall Street turned the page to another month following a volatile May.
The Dow Jones Industrial Average shed about 140 points, or 0.4%. The S&P 500 eased 0.4%. The technology-heavy Nasdaq Composite was marginally lower.
Fresh data released Wednesday morning showed job openings declined sharply in April.
Also weighing on investor sentiment, JPMorgan CEO Jamie Dimon said the economy is headed for a “hurricane” and “you better brace yourself.”
(Excerpt) Read more at cnbc.com ...
If you had invested in the S&P 500 when Brandon cheat-by-mailed his way into the WH, it'd be you would have gained only 8% in the past 16 months (adj for dividends). That's not even close to keeping up with Bidenflation.
This is why I think DJIA at 15,000 may not be so far-fetched anymore.
I don't pay much attention to the DJIA because it's only 30 companies. I'm watching the S&P 500 and staying out until it's down at least 30% from its ATH. And that's if it happens soon, which it doesn't seem to be doing.
In 2020 and 1987 the S&P 500 dropped rapidly 30% in a few months, then rebounded. But the 2000 slow drop took 2.5 years to drop 49%, and 2008 took 1.5 years to drop 56%. So if we don't see the S&P 500 at 3,370 (about 30% drop) soon I'll wait until it's below 2,900 (40% drop) or lower before buying back in.
Buy ‘til May, then go away-
Works pretty well
” ... I’ll wait until it’s below 2,900 (40% drop) or lower before buying back in.”
What if it doesn’t?”
Then I’ll buy back in after it goes up about 10% from whatever bottom it hits.
“Then I’ll buy back in after it goes up about 10% from whatever bottom it hits.”
How do know when it hits bottom?
Ping for later
70s Stagflation, here we come!!!
For example, as of yesterday's closing, PREIX (a S&P 500 index fund) is $108.95, which is down 13.6% from its ATH of $126.10 on Jan 3, 2022, and also up 5.97% from the $6.14 price it was at on May 19, 2022. That May 19 price is the lowest it's been this year. As for now, that's my hypothetical bottom. If it goes up 10% from that point I'll count that May 19 price as the true bottom and invest at the 10% rise from it. If it doesn't go up 10% from that, but goes down below that, I'll count the fund as reaching a newer bottom for me to investigate.
At least, that's my two cents' worth. How about you?
Unexpectedly
10% is arbitrary. S&P recently was up almost 9% from your bottom.
“At least, that’s my two cents’ worth. How about you?”
Long term growth and dividends. Someone will inherit my stocks purchased decades ago.
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