I buy with the intent of not looking at my investments but once a year. Playin it long term. Im young and this strategy has been great for me, albiet I did invest a larger portion of my portfolio between 2010-2013.
I'm keeping my powder dry for when the long overdue major stock market correction finally comes. Warning signs have been flashing for a few months (inverted yield curve, repo market crunch), and I think the coronavirus selloff is just a precursor to a much deeper downturn. I'm currently underweight on stocks and overweight on cash, gold, silver.
To clarify my post from above, after the stock becomes long term, I "skim off the top" of what the stock has gained, pay my capital gains, and keep it in a cash account. I have used the cash/money to invest in real estate (residential rentals). Loan is 15 years, tenant pays it and it also serves as my retirement. Stock market for me is a long term play where I try to minimize getting "too heavy" and I essentially assume the worst case scenario in that my stock portfolio will be worthless....so I am always planning on other forms to keep me afloat long term/specifically retirement
Nothing more than my bi-weekly contribution into index funds, etc. That and the one month of my emergency fund that I dropped in haha
I figure there will be another large drop and I will drop in another month of my emergency fund as well. Maybe I won't... doesn't really matter to me. All my investments are for long term growth and I don't really care to pay attention to the markets on the daily, weekly or even monthly at times.
I think there is significant downside yet to come. YMMV. Regardless of your thoughts on the coronavirus, its lethality, will you or your family get sick, etc., it has already created massive REAL economic problems that will take a few months to play out. Much like the 2008-2009 period, there were early trigger events that took awhile to play out before the full extent of the damage was made clear.
I think this first wave could be similar to the Bear Stearns collapse in 2008. That was late 2007/early 2008 and they were sold to JPM March, 2008. The markets had taken a dip (much like the last 2 weeks) but ultimately fell another 50% before bottoming.
I'm not predicting we have an equivalent drop, but I don't think anyone has fully priced in the real-world economic fallout from all of the industrial shutdowns, workforce quarantine, etc. There is a LOT of leverage in our global system, and factories/output dropping to zero for extended periods is going to create a lot of kinks in the flow of capital. The bond market is SCREAMING "caution" right now.
I do this for a living but this is not advice, just my $.02
Buying individual stocks is just too risky for me, I prefer mutual funds over the long run. Key is to make sure your portfolio is balanced between stocks, bonds, annuities, cash, real estate, etc to make sure you survive the next big downturn. I am two months from retirement so that is my strategy, somebody 20 years from retirement can afford to take on more risk.