The Sunday Call is the most important point I think you should consider before hitting the streets in the new week. This week it’s: Buy, Sell, or Hold?—How you should approach your investments this week.
Here’s my two cents.
First and foremost: Be comfortable with your asset allocations! You need a steady hand during these times and the only way to have one is to be comfortable with your investments and how they’re assembled. If you’re comfortable with them, then hold. If not, read chapters 3, 7, and 8 of my book again, pick your spot, and then make a move. If you’re not sure what to do then come to one of my workshops and we’ll work it out together. (They’re free.)
Second: Have a plan of action and execute it! Remember, we are at the midpoint of the action zone right now. Investment success is about achieving long term objectives, which can always be realized by maneuvering around this point. It’s so much easier to buy low than it is to sell at the highest.
In other words, don’t think about “selling high” right now, that’s too hard in such a messy market. Instead think about positioning yourself to “buy low.” To do that you’ll need cash. So if that means selling off a piece of your mutual funds around here to build a cash reserve then so be it. Buying low is where the real money is to be made.
And you can’t do that without cash.
Hostility requires versatility. Prepare now and be ready later.
PS: I’m hosting a forum Monday night at 8pm eastern. Here’s the info if you’re interested. Hope to see you there!