Now will people admit we were in a bubble.

I remember about a year ago how many people were debating it on here and people blasted and downvoting anyone that stated it was a bubble. Saying it is different now – yes, causes are different

• Interest rates
• Different economy
• Technology revolution in the business segment (work from home)
• Stimulus
• Retail investors

BUT STILL A BUBBLE with a crash / correction.

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I learned my lesson during the Dotcom bubble. I thought I was a “F”-ing genius with QCOM and few others from 1998-2000 and all the Y2K hoopla. In mid-late Jan, there was like a 10% drop – “I am a f-ing genius, rushed in to buy the dip”; by mid March-April, lost $300K and got out it.

It taught me a valuable lesson, max out retirement accounts with low cost mutual funds and save 15% cash of yearly income for emergencies, after that than purchase blue chips names and reinvest dividends.

Then and only then develop a ~10 stock speculative portfolio that you did a lot of DD. For me, more than 10 are difficult to keep current.

It also taught me to have a strategy on both the upside run and to manage downside risk (if any drops by ~15% I am out but will watch). On the upside, I take profits at 25% and if its 50%, I sell 1/2 – 1/3 and let the remainder ride and not really tracking it. (Today those stocks include FB, BABA, CC, AMD, and LLY.)

So when the crash happen in 2008, I was well positioned and rode it out. Retiring early and been enjoying the good life.

Today, I have a speculative portfolio to keep my mind active. I will ride this crash out and look for opportunities for my speculative portfolio.

Good Luck.

PS: I purchased my house right before the bubble at a fair price. I am worried today that many people are getting over-extended by purchasing an over-priced home that they really cannot afford because they really want home-ownership.