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Expect An ‘Avalanche’ Of Selling When This Market Breaks, Says “Dr Doom”
Ahhh the latest prognostication from Stopped-Clock Investment Advisors.
When the next crisis/drop comes, will anyone remember the # of years he was "wrong" in his calls? Or will they be too busy fawning over for (finally) getting it right?
Like all of these people, eventually they will be right. But as someone else pointed out, when they eventually ARE right, no one reminds people how often they have been wrong. Much better to position your portfolio so you can handle a correction/selloff BEFORE it happens.
Faber himself likes to say "at some point in their life everyone will be right". His time hasn't come yet, but it will.
And no, people will not remember all the years he was wrong.
FWIW, I always take 20% profit on 20% of my position every year and if the fund keeps going up, I keep doing it. Of course I pay attention to distributions and if forthcoming i don't do it since I don't reinvest distributions. This simple tactic has really helped me stay calm and focused. I have never and will never match the index returns, but I think that's a good thing when index goes down.
I also harvest some of my capital gains along the way each year so they want go to waste during a stock market correction. The amount I take each varries based upon a target income amount I shoot to achieve each year from my portfolio. The twenty percent that you shoot for each year is more in the range of 5% to 10% for me. This is one of the ways that helps me maintain a high cash level within my portfolio (capital gain harvest).
Comments
Ahhh the latest prognostication from Stopped-Clock Investment Advisors.
When the next crisis/drop comes, will anyone remember the # of years he was "wrong" in his calls? Or will they be too busy fawning over for (finally) getting it right?
Regards,
Ted
https://www.cxoadvisory.com/2875/individual-gurus/marc-faber/
Thx. Not even 50:50. So in other words, flipping a coin could give you a better percentage of accurate market prognostication over time.
But I think it's useful to listen to all the various voices out there. Listened to David Roche last evening (on CNBC West) who comes across in much the same vein as Faber.https://beta.theglobeandmail.com/globe-investor/investment-ideas/investment-veteran-david-roche-keen-on-gold-in-preparing-for-risks-with-trump/article33916816/?ref=http://www.theglobeandmail.com&;
And no, people will not remember all the years he was wrong.
FWIW, I always take 20% profit on 20% of my position every year and if the fund keeps going up, I keep doing it. Of course I pay attention to distributions and if forthcoming i don't do it since I don't reinvest distributions. This simple tactic has really helped me stay calm and focused. I have never and will never match the index returns, but I think that's a good thing when index goes down.
I also harvest some of my capital gains along the way each year so they want go to waste during a stock market correction. The amount I take each varries based upon a target income amount I shoot to achieve each year from my portfolio. The twenty percent that you shoot for each year is more in the range of 5% to 10% for me. This is one of the ways that helps me maintain a high cash level within my portfolio (capital gain harvest).
Take care and I enjoy reading your post.
Old_Skeet