We are in bear market territory! Three points to allow us to smile.

With fewer than 500 words, members can read this blog in less than five minutes. Following and studying the links embedded in the blog could take half a day. How you manage this blog depends on your level of investing knowledge. Your choice!

Monday Morning Millionaire Program members could review yesterday’s blog.

Yesterday, The Wall Street Journal published an article titled Dow Jones Industrial Average’s 11-Year Bull Run Ends.  The impact of the coronavirus on the economy and the sharp drop in oil prices have ended the longest period of stock market growth in history which we first wrote about nearly two years ago. By rebalancing to their personal asset allocation, Monday Morning Millionaire Program members took profits all along.

Will it get worse? How long will it last? What should Monday Morning Millionaire Program members do?

 

Will it get worse? The correct answer to that question is “I don’t know.” We would not know that by reading the financial press. Gurus voice their opinions which we should read for entertainment only. None will help us take action.

How long will it last? Same as above.

What should Monday Morning Millionaire Program members do? Ah! The Monday Morning Millionaire Program has the answers here.

1. Money that we will need in the next 5 years does not belong in the market.

2. We should have a personally-selected asset allocation. 50/50 is common with 50% being invested in an exchange-traded fund which parallels the S&P 500 and 50% being parked in a money market fund.

3. We should rebalance to that asset allocation when we see a drop of 5% or so. This percentage is a judgment call and is not an important one. Rebalancing is a winning habit.

Please note that the Monday Morning Millionaire Program contains opinions only. It does not provide any investment advice or endorsements.

 

Dr. Milan Somborac

The Monday Morning Millionaire Program supports do-it-yourself (DIY) investors which I have been for over 50 years. About my team and me

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