First thing I want to do is apologize for not letting everyone know there was no investment tip last week. Slipped my mind.
This is a really dumb old joke. Fred’s roof leaks every time in rains. A neighbor comes over during a rainy day and says “Fred, why don’t you fix your roof?” Fred says “I can’t it’s raining out”. The neighbor says “Well fix it when the rain stops”. Fred says “I don’t need to, no water gets in when it’s not raining”.
Like I said, dumb joke. But I think this applies to many people’s portfolio management. When things look bad they can’t make any changes because it’s raining. And when they look good, why bother? We all have a tendency to kind of act like Fred. But the time to make fixes to your portfolio is when it’s not raining. When everything is bright and sunny, that’s the time to take some profits, to balance your portfolio a little better. That way the roof won’t leak when the financial rain comes.