Its temperature is not homogeneous. You have a look at your portfolio, consider the business prospects, consider the valuations, and then make a decision on a per stock basis. Don’t get swayed by macro noisemakers, they will fill your ears, not your pockets. If a stock has a long runway ahead, unless its obscenely valued (>80 PE), stay put. As long as you feel growth rate can justify valuation, no need to worry. Even if price falls, you can own more of that business.
Depends on your thesis for buying in, whether you wanted to simply play the PE expansion and exit once your targets are met, or whether you want to stay in the game for longer.
Never wait for the market to tell you when to exit, always stick to your rules/plans based on your time horizon, return expectations and risk appetite.
Indicators don’t guarantee anything. US Government Bond Yield Curve Inversion typically an indicator of recession. We all know how that played, and those who sold thinking the market will go lower are either biting their nails from the sidelines or Fomoing at higher prices.
Disclosure: 75% of my portfolio are small caps. Continue to hold unless I get extreme lucrative exit deals
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