We've seen a huge rally in stocks over the past 3 weeks.
QQQ is up from its June low of 271 to 333 currently.
SPY pushed from June low of 365 to 429 currently.
Many of the high flying stocks that make up these indexes are up over 50% in that same time period.
Even ARKK has rallied from 36 to 52 in that same timeframe.
Many other high volatility stocks that were super hot a year ago are slowly recovering. This is a reminder to not get overly excited and start dumping all-in life savings back into the market because of a potential bull market fomo. Don't make the same mistakes of the past.
Don't forget to assess your risk profile and take gains on the way up. There's no harm in selling some shares of a stock that's run up 50%+ in the 2 weeks. You beat the hell out of the market on the long term with that move.
For example, I love ENPH. I plan to hold it long term. But in the past 6 months, it's gone up from $140 to $300. Do I believe that ENPH is the future? Absolutely. But at a P/S of 23 and P/E of 200, it's not a bad idea of selling a small portion (based on your risk appetite) to secure the gains and maybe move it into something more stable while you wait for more information to surface about the market and economy. Maybe I miss out 10% more gains. But if I'm patient, I can move it into a sector that has more value and higher chance to run up than clean-energy. Maybe a stock in a sector that has the chance to run up 100% in 5 months like ENPH did.
Again, all this is based on your risk profile. No one has a crystal ball, but the only way to get rich on stocks is to actually sell at some point. Maybe selling small amounts of individual shares of fast moving recovering stocks that had great quarters (ie. NET, ENPH, CRWD, AMD) will help free up some capital to buy more of them on the next downturn.
No one can time tops of bottoms, but just remember that taking gains is always a legitimate strategy. Even if the gains are small amounts. Take that money and treat yourself to something nice. Money isn't worth anything if you don't spend it on making your life easier or more enjoyable.
Last thing: the hardest thing to train yourself to do in the stock market is to sell into green and buy into red. Human psychology forces the opposite behaviour, so you have to actively retrain your mind.
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