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      09-25-2021, 10:12 AM   #22
chassis
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Originally Posted by 2000cs View Post
My portfolio is fine and I also hate bonds (they historically underperform in real terms). But that’s not what I’m asking.

Would you shift from autos (limited pricing power) to REITs (fixed asset cost and ability to raise rents) for example?

On the consumption side (business consumer or personal), would you build inventories, buy ahead or try to contract for long-term fixed prices?

How about hedging (financial instead of physical protection)?

Not asking for personal advice, just what people are thinking and general themes.
I participate in a number of financial/investing sites and threads, and don't recommend investments. Invariably the discussion breaks down into discord. Something along the lines of Ford vs. Chevy or mustard vs. ketchup.

I enjoy sharing ideas on trading strategy, portfolio construction and management, market functioning and macroeconomic topics.

When it comes to which investments to hold or to sell, I point to the people who are proven to know what they are doing: Buffett, Lynch, Dalio and many others.

The stock market always goes up in the long term. It is always a bumpy ride to get there. No one knows with certainty when a bump is coming. I think volatility is treated like the boogeyman, especially for articles written for retirees. It is used as a red flag warning that retirees might "run out of money"; this is rubbish. Volatility is generally associated with stronger returning investments. If you are comfortable with volatility, chances are you can earn above market returns. If volatility gives you an upset stomach, buy index funds and forget trying to be an active investor.

On the opposite end of the volatility discussion is cash. I see cash as a useful portfolio volatility-reducing position that also happens to be liquid. Cash is not trash, as Dalio puts it, if it is used strategically. Surplus cash is trash. Each investor defines the meaning of "surplus" for him/herself.

I use stock screeners on the Fidelity and finviz sites, with criteria I have developed over the years. I buy what I know, or that I can understand.

If the investment theory doesn't make sense, it doesn't make sense.

Last edited by chassis; 09-25-2021 at 10:18 AM..
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