The market is back in the extreme greed zone today. s&p 500 pumped 0.62% and nasdaq went up 1.3%. watching this happen just makes me think about how funny human psychology is when it comes to investing.
we always do the exact opposite of what we should do. when semis and the nasdaq are crashing, nobody wants to touch them. but the second they break all-time highs, everyone gets extreme fomo and wants to buy more. then we get stuck at the top, hold the bags for two years, and panic sell the moment we break even.
i'm done playing that game. i've set a strict rule for myself to never sell my core index etfs. instead, if the market drops 2.5% from the top, i just trim about 10% of my bags and move it into a safe asset like sgov. balancing your aggressive and defensive assets based on your age and how many working years you have left is honestly the only way to survive.
the news is making a big deal out of the 24k drop in jobs, but if you look closer, private sector jobs actually grew. the drop was mostly from seasonal school staff layoffs for the summer. don't let the media shake you out of your positions. just keep saving a little bit every day and build that retirement portfolio. stay safe out there guys!
