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-- has picked up in recent weeks in eleven of the last fifteen trading days the Dow has.
Had triple digit swings prior to may 21.
The doubt only have three tripled to two point moves this year so.
How do you prepare for what could be a very volatile summer Jefferies investor.
Dot com editor is here with for ways to prepare for summer volatility Jeff great to see you thanks for coming.
Let's talk about rebalancing first of all whether you whether you've had if -- had money in the market fully invested over the past six months god bless you good for you.
But she should start thinking about rebalancing also if you've had money out of the market too bad -- missed a great run up.
But maybe you two should think about rebalancing how we rebalance at this point.
Yet the simple idea have you got to figure out what mix is right for you know what you have a single -- -- working -- 2030% your portfolio you're talking about not -- given -- not -- for the last year there was only 10% of your portfolio could very well be 2030% your portfolio now so the prudent thing to do is trim back a little bit on shares you don't want haven't Apple's situation where the stock runs up really really high and then you don't take some of the profits off the table.
-- the momentum hurts.
Even worse when -- -- things the other way so it's responsible take a little money off the table and like you said it's not just about stocks it's also about asset allocation and bigger strategy so.
Anyone who was in the market and was maybe 50% -- 50% stocks to start the year that's not what you are right now it's a good problem to have because stocks have -- up so much -- be responsible based on what your overall strategy -- don't fall in love with -- winners because he can really hurt you when -- -- the otherwise.
That is perfect -- -- -- your next suggestion on how to deal with summer volatility and that simply -- to be extraordinarily.
Discipline when it comes.
To your -- threshold and yourself threshold for each individual -- correct.
Yeah I mean -- I never -- a market order I almost never place a market order because I I wanna be in control and I also want to know in the cold light of day.
What is a logical entry -- exit point from my box of is that if it's a -- -- I'm thinking of buying.
I think what I think a fair price would be I said in my brokerage account may get -- -- maybe I don't but at least I know that.
I'm in control of what I'm gonna -- it's really hard when the market slowing and as much as it is today you know Internet makes a big move.
You know sometimes people they they trade with their emotions and if you pick a target -- you think of logical as an entry -- exit point.
Just stick to a -- -- your broker automatically fire that trade for you it takes the emotion on the equation and another thing that takes emotion out of the equation if -- is if you don't -- and a particular stock that is if you really focus on funds usually -- -- a lot of guys.
But when you focus on funds as opposed individual stocks it it sort of protects shoot it insulates you from that emotional component.
Yeah it does and the other good thing is because of the university he -- we have out there.
You don't have to be like stuck in the spot which is a great place to be I mean don't get me wrong but if you -- to do an individual strategy that's a little bit more focus.
I mean like I love Biotech stocks right now and I like the whole kind of demographic push for health care there's a fund for my share as the I BD biotechnology fund and you can try to pick individual biotechnology winners and -- -- make a fortune or maybe you you lose your shirt but a diversified Biotech fund is a great way to play that flavor.
And get that kind of investment strategy without the undue risk of picking individual stocks could go to zero on -- failed FDA study.
-- -- your fourth suggestion here is is an important one and it goes back to emotions and that is.
Don't get caught up in euphoria but don't panic either when it comes to selling correct.
Yeah I mean you know we.
We in the media we try to be responsible we want to only talk about stuff that matters you know but there are some people out there and let's not act like they don't exist today have an agenda or they just want to get clicks on -- little investing -- Sometimes it's not really a responsible thing sometimes it makes matters -- to -- we've been talking right now about how difficult it is for the Fed.
To get its actual message out there well imagine someone just -- the cherry picks certain information just to instill some fear to get some page views and and it's it's a real thing without -- so you have to be a savvy media consumer as -- as an investor.
I wouldn't panic machine validate things through multiple sources in and think -- -- had.
Not with the headline did you see from the latest you know kind of -- Catholic website that you see that's not a great way to invest and Jeff.
Quickly referring to funds you talked about Biotech senior care housing.
There's something a lot of baby boomers either have to deal with -- their parents were maybe even -- about -- for themselves.
But there is -- there is a huge growing market here and there's a fund dedicated to this correct.
Yeah I mean I -- a big believer in trying to find -- opportunity this summer again remember volatility doesn't mean that the market's gonna crash it just means that it's gonna go up and out so maybe I did get a good entry point is sectors that I like right now like it's at a bar attack.
I like the kind a senior pushing the home health care.
Or -- -- fix Medicare very deep -- the senior housing properties trust.
That's for REIT is actually -- but it's got a little bit on and it's a great way to play that there are other ETFs out there that may do that.
But I like that specific REIT in the space -- one of those people who at the pool is sitting there looking at your stocks.
Can I write is stuff that's why -- why do it.
I am -- thinking about got a we've had this discussion before god and I trade him much I know -- passive index -- all the way to college but it's my upper middle class obvious what I do for fun -- a -- -- -- -- -- most investors are you gotta do is take it nice and easy and don't check it every day I mean I do it because I mean that's my thing it's a hobby not everybody -- that.
It's the fact kept capacity if they have -- and Jeff just.
Tiger I want a nerd like you'd be -- in my body -- so that's -- keep doing what you're doing we like -- -- -- that are coming out exactly thank you good to see it so.
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