DEC23 Insights

As of this writing, both the AU and US Markets are trading high. Who wouldn’t want a hot market right? I become scared when our investment returns shoot up in just a few months. I derisk and liquidate some, if not most, of our positions.

Time in the market and not timing the market is what builds wealth.

But..

Be fearful when others are greedy, and be greedy when others are fearful.

If stocks and ETFs and trading at its 52WHs, or have gone up by 10% in 2-3 months, why shouldn’t I take some off the table and derisk my positions? Wouldn’t it be considered be greedy then if I continue holding onto all of my positions and hope the prices always go up? So yes, I’ve derisked and liquidated more than half of our portfolio holdings.

Cash rate is at 5.15% in our Super. Mortgage Interest Rate is at 6.79% as of today. Saving on our mortgage interest at 6.79% is better utilized in our ING Offset Account than continue to investing in a hot market putting all of our investments based on market risk.