Has anyone reduced their stock exposure this year?

[Time2]

I've been feeling uncomfortable recently with Russia and Ukraine, If that starts, I suspect the oil pipeline may be compromised and I'm concerned China will take advantage of that and go into Taiwan. Also, I'm sure the administration will be increasing interest rates, that will slow at least the housing splurge and in the end I think stock prices.
We are retired and have a large cushion, I had slightly over 70% of our net worth in stocks, So at close on 2-15 I sold a little more than 20% of my portfolio mostly VTSAX, all in tax deferred funds. I'm just in cash now, not sure if I'll put it in anything. I'm more concerned about a loss now than earning a lot more. Last year was so goo I earned 6 years of spending, so I feel better just sitting on the sideline for a bit.
Anyone else moving that direction?


PS, tell me when to get back in.

 

[aja8888]

I have sold off some of my preferred stocks in my IRA since a rise in interest rates will negatively affect the current price (it's already happening). I am locking up some gains.

 

[Helen]

I'm in the opposite corner, I'm sitting on a sizable chunk of change that I would like to put in the market. I don't feel comfortable doing it now with the QE - "don't fight the fed".

In five years we will start taking SS and that and our pensions will provide enough to live on. Therefore, I really only need to have enough in safer investments to add to our pension amount for the next five years. The rest I can put into an indexed stock ETF and let it ride. Now doesn't seem to be the time to dump a lot into stocks.

 

[Mr. Tightwad]

Haven't sold anything but bought 300 shares of OHI last week. Added to my 400 something shares I already had. Roth IRA.

 

[frayne]

Staying the course of doing nothing with my portfolio.

 

[Major Tom]

I don't know what my current AA is, as I haven't checked my balances since the recent drop in the market. I was at around 70% in equities (nearly all in VTSAX), and am probably now closer to 65%. I don't plan on making any changes. If the market drops further, I will check my portfolio even less regularly, and concentrate more on the serious task of enjoying my day-to-day life.

When the market finally starts going back up, and gets close to the previous highs, I will resume checking my balances more regularly.

 

[ExFlyBoy5]

Nope. I figure my military pension is my "bond" allocation, so pretty much everything else gets shuffled into VTI. No selling, still buying.

 

[marko]

"The stock market is the only market where, when the price goes down, everyone runs for the door" Warren Buffett.

I tend to buy on bad news but I'm already at a heady 75% equity and pretty happy/comfortable where I am. If I was 40yo, I'd be diving in. I did buy big in 4/2020 and it has paid off quite nicely.

 

[daylatedollarshort]

We don't have a high allocation to stocks anyway so I have not been changing the allocation. I have been switching to more dividend stocks. I decided to start thinking more in terms of what is our income from fixed income and dividends than market value, because the market value of just about everything is likely going to tank this year and that is kind of depressing.

So I have been focused more in income, and that is a happier number since we have a lot of TIPS and floating rate funds that have been doing well in with higher inflation and rising interest rates.

 

[street]

Staying the course of doing nothing with my portfolio.

Yep, same here.

 

[aja8888]

I actually bought a lot of Exxon and XLE last November. These energy plays are in addition to my pipeline stocks and MLPs I have had since mid 2020. That has offset the drop in the DOW by a nice margin. When oil is over $100/bbl and the upcoming Russia/Ukraine conflict is over , I plan to lighten up in the energy sector. This is all my play money in my Roth while the other accounts are full of SCHB, but NO corporate or municipal BONDS.

I do have a lot of cash sitting on the sidelines along with my I Bonds. My asset allocation is pretty fixed income heavy as I am approaching 79 years old and may need lots of cash for DW when she finally needs more care than I can give her right now.

 

[Happyras]

I believe returns will be low to negative for some time until we get in balance with inflation factors/Fed rate hikes, corporate debt and lack of stock buy backs, currency and growth. That along with some black swan events is enough to make anyone cautious. There is so much more risk now going for upside in equities, when so many more factors are head winds. Why not sell the riskier upside for a cash in hand premium?

For now I am slowly turning toward a buy/write strategy using SPY and investing in some overly impacted corp debt/preferreds to get some moderate yields. Its all about volatility, and VIX is a great measure. If we get some more volatility in Europe, I may increase my exposure there. The lost decade still rings hard with my portfolio, where I foolishly paid an advisor/accountant who made money while we lost as we held mostly mutual funds.

No advisor will approach you to consider doing a buy/write in the money strategy, but my "private client" guys at Fido and Schwab do not argue that it is a safer way to maintain equities in your portfolio until this all sorts out......My wealthier friends have proven this works well for many years, I am finally listening to them.

 

[Happyras]

I've been feeling uncomfortable...


PS, tell me when to get back in.

Don't get out, just get covered and enjoy the premiums.

 

[erkevin]

I've been buying a lot of VTI the past couple of weeks, 6 figures worth.

 

[Happyras]

I've been buying a lot of VTI the past couple of weeks, 6 figures worth.

Possible to do covered calls on VTI, but SPY has much more volume and risk premium, I believe, but could be proven wrong.....

 

[David3]

I lightened up a bit in our tax deferred accounts since I am approaching my retirement date (at about 65/35 equity/bonds&cash now); don't want to have unnecessary risk exposure as I transition from earning to spending. Planning to ease the money back in with a bit more focus on international exposure.

 

[DjBrown]

Bought 1000 shares of PM last week at 104.
It is up 7k so far.

I hope market will decline another 10-20% so I could buy some QQQM or SCHD or VTI.

 

[Vincenzo Corleone]

I've gradually brought our asset allocation from 100% equities to about 50%/50% from December 2017 to December 2021. I did this because I left the workforce in December 2017 and my wife is thinking about doing the same in the near future. Going from 100%/0% to a 50%/50% allocation at this point in our lives seemed to make sense and helps us sleep at night.

No further tinkering is planned due to Russia-Ukraine.

 

[Jerry1]

I moved a little bit from my longest duration bond fund to GLD. Nothing material, but if war breaks out, I think I’ll get a little bump from gold.

 

[copyright1997reloaded]

I honestly can't figure out why folks find it necessary to make a big decision (e.g. 20% of 70% of their net worth) on ONE DAY.

If I sell, it is little bits at a time. If I buy, it is little bits at a time. Why? Because I can't predict the top or bottom. But it also does help psychologically, i.e. I "did something".

The best time to lighten up is when you are feeling greedy and your equity allocation is too high. The best time to buy is when you are feeling fearful and your equity allocation is too low.

 

[Montecfo]

I have a bit more cash than usual after selling some positions that had met objectives. Have put money to work in small bites which will continue.

 

[razztazz]

I'm moving in that direction but haven't sold anything yet. What I'm looking at...
While not as obscure as COVID was 2 yrs ago the Russia thing is a potential sizable unknown. Inflation. The market is entirely schizofrentical about it. Inflation news drives the market down... or sometimes not. Then sometimes the market is way up with simultaneous inflation headlines. Potentially many shoes left to drop.

It makes no difference to me that I have two pensions that I live on about 50-60% of. It makes no difference to me that I have basically all cushion, not just a big cushion. If I were going to buy something I'd wait till we had an actual buying opportunity. Thus far I haven't seen one. And after losing 50% of my equity allocation (potentially) I'm not denuding a big chunk of my fixed income to buy stocks.

 

[teetee]

I am not retired yet and I bought more stock index starting the New Year 2022. When the market goes down, the best is buy more so when it rebounds, I get more profit.

Losing money is never an option doing things long term with steady investment.

It would be funny that Russia will be using low tech weapons to invade Ukraine because of the chip supply chain issue. No drones or missiles, just guns and mines.

 

[Exchme]

OP already hit on the problem. To play the market timing game, you have to be more right than the market about the future to time getting out and be more right again than the market again on when to get back in. Folks that get frightened out tend to overstay on the sidelines and end up worse off than just staying in the barrel and going over the falls now an then.

I recall talking to a guy in 2018 and he proudly told me he went to all cash before the crash. I asked what crash he was talking about, he said 1999! He did miss a generational downturn, but it didn't help him at all since he was permanently sidelined.

 

[aja8888]

I am not retired yet and I bought more stock index starting the New Year 2022. When the market goes down, the best is buy more so when it rebounds, I get more profit.

Losing money is never an option doing things long term with steady investment.

It would be funny that Russia will be using low tech weapons to invade Ukraine because of the chip supply chain issue. No drones or missiles, just guns and mines.

Well, they also have tanks and aircraft, if needed.