What am I doing in this Almost Bear Market?
We aren't technically in a Bear Market yet "The Securities and Exchange Control Commission defines a bear market as a period of at least two months when a broad market – measured by an index such as the S&P 500 – falls by 20 percent or more."
BUT eight of my stocks are down more than 20% this year. Four are down 30% and one is down over 50%!
I sold some of the ETFs I had that were up for the year to generate more cash. I typically try and never sell individual stocks unless the underlying business is broken, but I felt like I needed more cash so I decided to sell some sector and factor-based ETFs.
With the excess cash, I am moving very slowly. I allocated a portion to $JEPI every month JEPI is great because it allows me to have covered call exposure without going through the hassle myself. I used to sell puts and calls for income during times like this when the market is relatively flat, but I lost the patience to do this.
I'm also leaving my stocks alone and have no plans to sell them. Even the ones that are down big this year. I might allocate some of the cash I built up to some of my favorite ones but at this time I'm holding steady.
Finally, I'm looking for some safe "bets" in companies with possible buy out opportunities and of course $IPOF which is Chamath's biggest SPAC that recently announced an extension. I really like $IPOF because worst-case scenario I get my money back plus interest. But the best case scenario something happens to move the stock up and I sell for a profit.
The other company I am focusing on right now is $CANO. Cano is trading around $6 a share but could have possible interest from a large managed care company at $12 plus. We will see but it feels pretty safe for now.
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Good comments here.
I have been taking it slow too. Still buying a few of my beaten down names, but also expanding geographically and operationally.