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A bit of reading about bubbles:


Note: He has been bearish many times in the past. Though I believe he might be right this time... I also believe in a crash within the next 2 years. But maybe I'm as wrong as he has been in the past.
 

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I'm happy with a 20% correction if we can get there...at least then there would be a few reasonable dividends to buy...its crazy how fast my net worth has increased. Of course I said that when the TSX hit 16k as well.
 

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NASDAQ approaching bear market territory (-20% drop). Currently at -18%. If NASDAQ drops below 13,000, it'll be going into bear market.

S&P 500 now in correction territory (-10% drop). Currently at -11%.
 

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Corrections are usually good places to look at rebalancing. If nothing is too out of whack, you can wait to see if a bear market comes. Corrections are typical every 1-2 years so this one was definitely due and looks like a solid one too.
 

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I wonder if now is a good time to add or wait? I think the market is pricing in a war w Ukraine after Biden's recent moves. I think this is all sabre rattling and cooler heads will prevail.

Read in a cash management article, when the market falls by 15% every 2 years or so use ~ 20% of your available cash.
 

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Corrections are usually good places to look at rebalancing. If nothing is too out of whack, you can wait to see if a bear market comes. Corrections are typical every 1-2 years so this one was definitely due and looks like a solid one too.
I did some portfolio shifts in December January but also reduced my cash position a bit early. This is a habit that I have developed over the years. In order to combat this I have increased my target cash weighting from 5 to 10% over the years. Always a conundrum in dealing with cash drag vs. being fully invested. Today's red in the market helps increase that cash weighting so that I can buy more and my portfolio has a higher yield as well. :p Being facetious with that last comment as it is total return that matters.

I am still amazed that the possibility of a .25% increase can move markets this much in the short term (perhaps 1 - 1.5% this year). Will this scare off the B of C from raising this week? I still want them to raise in January as I think longer term it is the right move. If they don't raise rates now what tools will they have to use when the next recession hits.

Like Jimmy, the dilemma now is to add or wait. I am going to spend today on the sidelines as I think there will be more panic selling leading up to Wednesday. May make a purchase or two tomorrow. I have some cash to deploy in February. Looking at adding to MFC and starting a position ATD. Would like to get into MSFT or APPL but at a price much lower than here. Same with Industrials.
 

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Every time central banks try to raise rates there is a taper tantrum. If you zoom out several decades the rates just drop then never regain again

0.25% is nothing but over reacting means rates will stay rock bottom
 

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0.25% may be nothing, but it's doubling the Policy Interest Rate, lol...

And when 10-year yields are not even at 2%, then increasing the Policy Interest Rate by only 0.25% is huge. A Policy Interest Rate rising by more than 10% of the current 10-year yield, lol...

I'm not arguing that they shouldn't raise rates, they should, I'm just pointing that with rates so low, we are in deep sh*t.

Will we ever see 10-year yields back above 5%? HAHAHAHAHA, hilarious!

The rich controls this world and won't allow such a thing to happen.
 
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