$2M Tuesday – Our Long-Term Portfolio Hits a Milestone

$2,003,426! 

That is JUST the net of our Long-Term Portfolio, up about $44,000 since our July 15th review and I’d love to take all the credit for it but July 15th just happened to be a dip in the S&P (and we’re generally playing blue-chips in the LTP) and we have since recovered about 200 points (5%) – back to new all-time highs on the S&P 500 – again.

Still, it’s a big milestone and the last time we hit $2M in the LTP was September of 2019 and we decided that was ridiculous and we cashed out and then we started the new LTP in October of that year, with a fresh $500,000 commitment.  This was all very fortunate for us because, when the crash came in March of 2020, we still had very few positions (we were waiting for Q1 earnings reports) and we were able to jump in and pick up a lot of great stocks on sale.  

Now I have very much the same feeling as I had in late 2019 – that the rally has been too much, too fast and we’re long over-due for a correction.  It may be the Delta varient or it may be something else that sets it off but we are simply paying far too much money for the average stock and there’s bound to be a reckoning at some point.  

FOMO is, of course, the Fear of Missing Out and of course we’d hate to miss out on a 1999-like spike up but, on the other hand, it would be a real shame to get caught in another 2000-like spike down – or 2008 or 2020 – what is the plan for that BEFORE you decide to let it all ride.  

I will say again what I said last time we cashed out:  If the rally continues, we will turn $500,000 into $2M again and it’s not like we don’t make any money on the $1.5M we move to the sidelines, we just put them into very well-hedged, long-term positions or blue-chip dividend stocks or invest in a businss or rental properties – something besides the open market.  So we’ll…

Provided courtesy of Phil’s Stock World.