Hello all,
Cheers to the bull on recent market rally.
I have been on sidelines since Dec-Jan and I have enough cash ready to deploy. I am not trying to time the bottom but waiting for better economic environment. I did not buy in June thinking it would drop more and then I got busy in July with my new baby. I barely checked market and news in July and first week of August until last Monday when QQQ was 315 and SPY was 410 and I said to myself this will likely pullback and then I will start buying, but I was definitely wrong and market kept ripping.
Now everything is overvalued again. Forward S&P 500 P/E is close to 19 which is high while Fed is hiking. AAPL is few dollars to ATH. MSFT is close to 290. TSLA is 900.
I am not an expert, but I cannot wrap my head around this massive rally. Fed is still hiking. Inflation seemed to have peaked but too soon to tell before August CPI. However, it does not seem we will revisit June bottom, and that is ok, but I am hoping for a pullback in S&P to below 4000.
My current plan is to start small DCA'ing next week and wait until September (most volatile month and before next fed meeting) and start buying at lump sums if S&P 500 goes below 4000.
But are you buying (not scalping) at these levels? and if so, why do you think market might further rip from here while Fed is still hiking with no signs of pivot and economy is still slowing?
Disclaimer: I am long index funds and GOOGL. I also hold couple QQQ puts for hedging which got burned.
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