So here is the thing this run up since the end of December have been up and up for 1 month. Many have wanted to add during the correction, but there just wasn’t one.
Reminds me of the bull run from 2009. It teaches you that
- in a bull run, the pull backs are small and infrequent
- the largest part of the bull run may occur over 10 to 20 days
- you underperformed when you couldn’t get leg in fast enough
- if you see companies that are valued and with a margin of safety you should systematically own it
My portfolio currently underperforms due to being yield heavy. I am comfortable in this 48% invested position. If the market continues to go up, picking up value stocks that yields should still do well. 50% of my returns will come from dividends.
Having a few “strikers” will lets you keep up with the broad market index. But a rising tide lifts all the boats as well, even the dividend cows.
How about you guys? Do you think the end is here? More run to come?