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Non-Tech : Kirk's Market Thoughts -- Ignore unavailable to you. Want to Upgrade?

To: Kirk © who wrote (14302)	8/11/2022 2:46:13 PM
From: Sun Tzu	1 Recommendation Recommended By Sr K Read Replies (1) \| Respond to of 27093

I don't run a balanced portfolio. Not in the sense that most people understand it anyway. I've never been a 60/40 or any other percentage kind of person. I aim to allocate risk in a barbell fashion and in direct opposition to the lopsided market perceptions. And I adjust that based on trend. I let it run until they go below trend or the trend is not sustainable. Then I will trim it and often trim it hard. This makes my individual positions fairly volatile, but often they cancel each other out. Today for example my portfolio is up 4% on the whole. On a day that the market is flattish, I could be down 0.5% or up 0.5%. But in general the momentum carries me and since I cut positions fast, it doesn't often move against me. But when it does, individual positions can take a big hit. EDIT In a bear market, everything happens a lot faster. That is what makes it so hard. You are skiing down double black diamonds and your knees have to come up to your chin. This means that if you get it right, there will be a lot of stocks that will have frequent 30% - 70% performance. In a bull market that happens over a 2 year period. But in a bear market it happens every 8 - 18 weeks. If you get it right, you can make a fortune even with a long only portfolio. But skiing double black diamonds is not for everyone and many people end up with concussions or worse.