I took a drastic decision today, I decided to reduce my stock holdings by 60% and my Crypto holdings by 30%.
My main concern is the US election, a scenario was put to me over the weekend, Trump is leading in counted ballots late on election night, but indications are that mail in votes will be enough to give Biden the win.
This would be chaos, it is possible if not likely that Trump would use this situation to claim victory.
I think Trump would find less support than he thinks in this situation but it would still be a mess for days/weeks.
And this is just one possible event, there are other destabilizing ones like it. So I decided I'd like more cash on the sidelines.
To be clear I think the markets will be up up in 6 months no matter the outcome of the election but I'd like to have cash as I think there will be trading opportunities out there for someone with some room to maneuver.
And I won't just be sitting it out, I will still have sizable holdings, and the freed cash can be used to earn passive income. Lending, selling options, hedging futures, etc.
Well what do you think? Am I been scared away for no reason, or am I not scared enough?
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Please do not invest on the advice of a stranger on the internet, only use this advice here as a starting point for your own research, and then if you choose to invest please only invest an amount that you can afford to lose.