2017-02-07, 06:13 PM
(2017-02-07, 08:51 AM)Nanuuk Wrote: I am not smart enough to market time so I tend to hold stock long term. I'm just becoming aware of the effect of interest rates on certain stocks, e.g. utilities, but tend to hold onto them as well during a down cycle as they pay dividends and I re-invest them to acquire more shares. At some point my strategy may change to take the dividends in cash to spend in retirement. Then I would be inclined to sell cyclical to capture any capital gains before they fall dramatically. Trouble is my crystal ball doesn't work that well!
Trust me, I definitely won't claim to think that I'm smart enough to time the market either.
But when I try to look at the economics behind some of the major markets there are a few things that start to paint a darker picture (increased private, corporate, and public debt, consistent requirement of QE, negative interest rates, bailout / bail-in procedures being set into developed countries, etc.). I could be wrong, but my gut is telling me it's time to start diversifying into ventures that leave me somewhat better protected if a market correction is coming within the next 18 months.
It's probably a more sound portfolio plan anyway (rather than be 'all-in' on North American stocks), so maybe it was just correcting a situation that could be deemed too risk tolerant.