S and P Circuit Breaker Trip

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We are mostly liquid now and I’m curious on what stocks some may be considering for purchase after the Circuit Breaker trips. The market is at about half the tripping point as of this post. I’m thinking GM, defense or transportation ? Obviously foreign companies are a No!

[Stu from NYC]

We like diversity so mostly in mutual funds. Seriously considering ETF right now

[CoachKandSportsguy]

Holding time frame? for individual stocks?
Do you want to trade a diversified portfolio? up to buying and selling at close depending?
Can you hedge the diversified portfolio instead of selling?

Do you want to make about 20% per year? +/-


It will cost you about $1,500 per year, and you will easily make that up in gains. .
But it can be up to daily, with up to 30 stocks at the most, and be able to hedge with SPY/SPX put or call spreads, or straight puts.

If so, send me a PM, and i will show you where to get the advice. .

[JoelJohnson]

We like diversity so mostly in mutual funds. Seriously considering ETF right now
Look at SCHD

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Look at SCHD

5% drop today is not enough for the reset, but it was close.

[tophcfa]

5% drop today is not enough for the reset, but it was close.

So, exactly how does one determine when it’s the best time to shoot all the dry powder?

[spinner1001]

So, exactly how does one determine when it’s the best time to shoot all the dry powder?

Only afterwards do you know the ‘best time’.

[CoachKandSportsguy]

So, exactly how does one determine when it’s the best time to shoot all the dry powder?

very difficult, though it might be easier to just hold a portfolio and hedge it as needed. Or buy low volatility funds, or seek institutional portfolio manager investments/advice.

Might be what that portfolio management fee will cover, if losses are minimized for a lower but more steady annual return, ie reduced portfolio drawdown trading off against big annual SPX returns. SP500 averages 10% per year with dividends, but there are very few 9-10% years. The annual distribution is a bar bell shape, with very few observations of annual returns between -5% and 15%.

A portfolio returning 7% per year in an IRA will continuing growing beyond RMD withdrawals until the age of 87. . . then the balance will decline slowly.

A portfolio returning 7% per year in an IRA will continuing growing beyond RMD withdrawals until the age of 90. . .

might be something to that slow and steady lower returns for professional management than just a cost minimization strategy.

YMMV

[Stu from NYC]

So, exactly how does one determine when it’s the best time to shoot all the dry powder?

Nobody really knows. Long run stay the course IMHO.