Suggestions for moving forward
Hi Marty,
given current market conditions, what would you suggest for full time employees in terms of investment.
Lets say market started correcting. What would be the best action. (Lets say you are already in the market companies like amazon, googl, tsla, sofi, baba, shop.
is it best to stay invested and add on more, just observe until correction ends and moving averages becomes in bull territories again. Or just dca?
A: If you are going to dollar cost average then you must stay invested through good times and bad times. That is why the selection of your stocks to DCA is critical.
Amazon googl baba has good financials.
sofi i am not sure. Tsla happy to dump. Shop also i am not sure. I like the company though
A: If you are employed and have time in the market then you have an advantage over most people. The most precious commodity in the stock market is: TIME!
I am not sure of your age. But, if you have 20 years or more to build a nest egg for yourself I would start with putting about 10% in an index fund and DCA over time. The stock market will correct over time. However, the indexes will always come back and make new highs, and individual stocks may not. Selecting growth stocks for longer term contains a good deal of risk. I would create a portfolio with a mixture of dividend paying stocks and DRIP them for the 20 years or more. Since you are dollar cost averaging then it does not matter if the price appreciates. You just need to watch and see if the company is increasing their dividend annually.
Adding growth stocks to your long term portfolio can boost returns in the short term. However, those growth stock are not good for the portfolio when they stop growing. Out of the stocks you mentioned only GOOGL and BABA pay a dividend. I have attached a 10 year chart of the stocks you mentioned with a note: past performance does NOT guarantee future results.