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. $S&P 500(.SPX)$ $SPDR S&P 500 ETF Trust(SPY)$ $NASDAQ(.IXIC)$ $Nasdaq100 Bull 3X ETF(TQQQ)$ $Invesco QQQ Trust-ETF(QQQ)$ $Nasdaq100 Bear 3X ETF(SQQQ)$ $NASDAQ 100(NDX)$ $DJIA(.DJI)$ $GLOBAL X DOW 30® COVERED CALL ETF(DJIA)$
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
