Here's the trick.
Pick an asset allocation that you can hold if the market crashes 50% or more tomorrow and takes 10 years to recover.
Because it might.
This is ALWAYS true. Regardless of valuations or any other stupid market "signals"
If you are young and/or with a secure job, that still might be 90%+ in stocks, because you have plenty of time to wait for the market to recover, and can still invest year after year into a lower market (which will pay off in the long run).
If you are older and/or close to retirement, you should be more conservative, because a market crash might correlate with forced retirement, so you better make sure you have 10+ years in safe money in order to give the stock market time to recover.
Once you are invested in an Asset Allocation that can withstand the next market crash, you NO LONGER HAVE TO WORRY ABOUT THE NEXT MARKET CRASH.
This is the way.
Pick an asset allocation that you can hold if the market crashes 50% or more tomorrow and takes 10 years to recover.
Because it might.
This is ALWAYS true. Regardless of valuations or any other stupid market "signals"
If you are young and/or with a secure job, that still might be 90%+ in stocks, because you have plenty of time to wait for the market to recover, and can still invest year after year into a lower market (which will pay off in the long run).
If you are older and/or close to retirement, you should be more conservative, because a market crash might correlate with forced retirement, so you better make sure you have 10+ years in safe money in order to give the stock market time to recover.
Once you are invested in an Asset Allocation that can withstand the next market crash, you NO LONGER HAVE TO WORRY ABOUT THE NEXT MARKET CRASH.
This is the way.
Statistics: Posted by HomerJ — Sun Nov 09, 2025 10:46 pm — Replies 30 — Views 3421