Do you plan to increase Equity/Stock Holdings before Fed pauses rate hikes?

[cyber888]

With the S&P entering a new Bull market and the Fed, most likely, pausing rate hikes this week, are you planning to increase your Equity allocation or stock holdings this week.
I'm thinking of adding more to my S&P500 401K index fund tomorrow or Tuesday. What do you think? Any plans on your part.

 

[Katsmeow]

No. I rebalance about twice a year so it is about time to check to see if I need to rebalance. If so, then I might do that. But, last time I checked a few months ago I was little over on equities (not too much) so probably not.

 

[VanWinkle]

I plan to sell equities to re-balance into intermediate bonds to get back to my 50/50 AA.

 

[disneysteve]

My AA is not based on current market conditions, interest rates, Fed actions, phases of the moon, or alignment of the planets, so no, I won’t be changing my allocation.

 

[aja8888]

Who says we are entering into a new bull market? I must have missed the headlines?

 

[Car-Guy]

I'm not sure the Fed will pause, but regardless, no more equities for me.

 

[dmpi]

I'm happy with my 66/33 allocation. Not going to change it.

 

[RetiredAt49]

Who says we are entering into a new bull market? I must have missed the headlines?

https://www.cnn.com/2023/06/08/investing/bull-market-story

 

[RetiredAt49]

My AA is already 100% equities (excluding rental properties) and we plan to sell a couple rentals this year and plan to pour most of it into the market.

 

[MarieIG]

Who says we are entering into a new bull market? I must have missed the headlines?

The S&P squeaked out of a bear market the end of the trading day Friday.

 

[cyber888]

The S&P squeaked out of a bear market the end of the trading day Friday.

Right. it happened Friday. 67 Years of Data says it's going up some more.

https://www.fool.com/investing/2023...m_medium=feed&utm_campaign=article&yptr=yahoo

 

[Sunset]

Would have been better to do that 10 days ago.
Stocks have already gone up.
I notice the papers/news always report about how the market is doing better, long after it already started doing better.

Anyhow not changing our allocation.

 

[jurgs01]

I would wait until you see how quantitative tightening at the same time as Treasury refilling their General Account goes.

Both are sucking liquidity out of the system in the next few months.

 

[ownyourfuture]

I'm not going to change anything.
Not trying to influence anyone either way, but I found this to be an interesting read.

https://www.axios.com/2023/06/01/sp500-tech-companies-stock-price

 

[arcyallen]

I've made zero allocation changes, ever, based on:
A) What the market has done recently, or
B) What I think the Fed will do this week. Or month. Or year. Or what they previously did.
C) Pretty much any other external factor.

What I -do- base it on is my needs and risk tolerance, which thankfully changes very little.

 

[pjigar]

My AA is already 100% equities (excluding rental properties)

Same here! And we don't want to sell any rental just yet. Will wait till I have 0 earned income to reduce the tax bite.

 

[Bigdawg]

My AA is not based on current market conditions, interest rates, Fed actions, phases of the moon, or alignment of the planets, so no, I won’t be changing my allocation.

But, what does the magic 8 ball say?

 

[Bigdawg]

I'm not going to change anything.
Not trying to influence anyone either way, but I found this to be an interesting read.

https://www.axios.com/2023/06/01/sp500-tech-companies-stock-price

Interesting read. But, in any given year, isn't this always the case? Maybe not 5, but it seems that it is usually just a few (5-10 I'm guessing) that drive the market higher during the average bull market. I'm sure someone will come along and either confirm or refute my statement.

 

[pjigar]

OP,

Stating the obvious: A lot of users (including me) here has an AA and stick to it regardless of market state and direction. Chasing the gains is a futile exercise (been there, done that in younger years). Predicting the future is very hard and to act on that prediction is almost impossible because you have to be right twice in a row: when you sell and when you buy.

There are lot of books and articles on AA so I won't say anything on why you want AA and stick to it.

 

[MarieIG]

Right. it happened Friday. 67 Years of Data says it's going up some more.

https://www.fool.com/investing/2023...m_medium=feed&utm_campaign=article&yptr=yahoo

Interesting article. (I tried to read it last night but started dozing off.)

I would not be surprised to see a pop, followed by a downturn in the fall, and an upturn sometime in 2024. But - I have never, ever been a good short term predictor. So, I will probably stick with my current game plan, stick with a largish chunk in the broad-based index funds, dollar cost average into those ETFs I would like to increase, and buy limited amounts of stocks that I want, when their price looks good. The one thing I don't do is chase stocks when they pop - which has resulted in me loosing out on run-ups.

 

[Al18]

I think you’ll see the pop soon. WSJ just posted an article today saying companies and executives were dumping stocks in April and May at the quickest pace in years.

 

[ncbill]

I'm waiting for Putin to break out those tactical nuclear weapons he keeps talking about.

Then I figure I can pick up some bargains!

 

[RetiredAt49]

Powell and his posse are going to pause rake hikes tomorrow (6/14) but they will use strong/tough language “that there job isn’t done” until they have achieved their 2% inflation rate goal “and future rate hikes might be necessary”.

 

[Northforker]

If you want to ride those 7 horses, $MGK

 

[mickeyd]

I follow my PLAN. Stay close to 45/45/10 AA. I always use upper-case PLAN when referring to it. It is that important to me.