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It Is Time To Reduce Stock Market Portfolio Risk Not Increase It (Public Portfolio Update) – Mike Swanson

After the stock market had a fake wonder rally last week that demonstrates that it is a real bear market, it is time to take the bear market in the stock market seriously.

It’s real.

That doesn’t mean sell everything, but it means that now is not the time to increase portfolio or trading account risk by buying more or getting into more volatile things. The key now is to have cash reserves so you can buy when decline is over, and there is no sign that it has come to an end yet.

I know people are going to be telling you to buy today as people said that last week too, and there will buyers whenever the market has a gap down who try to guess the bottom. The market will probably rally again this week at some point, but until the stock small fry stops trying to catch the bottom and sells in panic there will be no real end to this bear market. I have zero interest in trying to play wonder rallies and am only looking to buy when I believe the decline is over for good.

For 20 years I ran a pay trading service and shut it down at the end of 2020.

What is happening now is one reason why.

People WILL NOT pay for a service that says it is time to step away for awhile and be patient.

If you tell people to sell or raise cash they unsubscribe.

I didn’t want to be caught in that trap and that is one reason why I shut it down – I knew this moment would eventually come and did not need the money anyway.

So, started a public portfolio that is completely free the other week try to help the few that can listen and pay attention.

It ain’t many, as the activity of Robinhood traders and the Fidelity self directed investors shows us.

Cathie Wood became this bull cycle’s guru, because she gave people what they want and dozens, perhaps hundreds, of financial “experts” repeated her technobabble talk to get followings of their own.