Looks like it.. I think a lot of people will be experiencing a major market crash for their first time me included. Time to build up xp and hodl....
To be more exact, most have never experienced this with a portfolio large enough to feel pain and regret. All I had back then in the GFC was 135k bought into it 35 percent down, went further down like 15% or more and I panicked. Shut the computer and played world of Warcraft and do overtime at work never to touched it again many months later. Heed my advice !
It’s never about this man made algorithmic concept of 110-age. It’s all about identifying your resilience and appetite for risk first and foremost. It’s damn hard. Then u see whether u can fit into this arbitrary concept of 110-age. Screw this up and u will be with many never ever to invest again. Take it as a very cheap lesson. Embrace it cuz it’s gonna make u rich.
It’s still too early to buy. I still advocate continual investing with equity between zero to max 50 percent as max. Then go 100 percent risk asset once Shiller cape fall below 20. Don’t be too greedy and wait for 8 or 10. DCA if need be but need to b 100% risk asset within one years time when cape goes into and continues to b below 20.
If for whatever reason it goes back up, and u have buyers remorse, and still a noob, then keep equity between 20-40 percent at all times when cape is above 20.
I’ve now sold everything including bonds. The x2 recent days of positive correlation between equity and bonds were very disappointing. Everything went so well until investors decide just to dump everything akin to GFC.
I won’t regret cash even if equity went back up. My sanity and peace of mind is worth more. After all research done by wade Pfau Shows that even zero equity with timing with Shiller cape still rank superior to a 100 percent equity over a very long period. U just need to alter the cape higher to take more risk. This is good enough for me.