March is here and my emotions about the stock market are all over the place, I am nervous, worried about potential losses.
I simply point out that valuation risk exists and that, if you open a 5/10/15-year window every time the sp500 has traded above 25x earnings, the returns were not promising.
So a portfolio consisting of American index funds or high-multiple names carries a risk that I have no interest in bearing.
I don't have that problem, since I don't invest in funds and, if I hold a high-multiple name (like $Taiwan Semiconductor Manufacturing(TSM)$ ), it is simply because the multiple has expanded and there a trailing stop attached: the risk/reward becomes worse and worse the higher the shares trade and there are better uses for the funds. $S&P 500(.SPX)$ $SPDR S&P 500 ETF Trust(SPY)$ $NASDAQ(.IXIC)$ $Nasdaq100 Bull 3X ETF(TQQQ)$ $Invesco QQQ Trust-ETF(QQQ)$ $Nasdaq100 Bear 3X ETF(SQQQ)$ $NASDAQ 100(NDX)$ $DJIA(.DJI)$ $GLOBAL X DOW 30® COVERED CALL ETF(DJIA)$
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