When stock markets hit all-time highs, reduce your position size. Instead of investing $5,000, put in $3,000. Buy less when prices are high, more when they're low. Rising rates also push bond prices down while yields stay the same, giving you better deals on bonds.
Chapters
go down again, like the stock market— up and down, up and down. That's the only thing we know for sure. We just don't know when. Right now, stock prices are at their highest level in the history of the world. The Dow Jones is at its highest level, the S&P is at its highest level, and the NASDAQ is just— you know, the tech sector is still almost 20— almost 10% below its all-time high. Um, But that's not a lot. So stock prices are very, very high right now. So if you were normally going to go out and, and take an initial position in something at about $5,000, you'd be smarter to take a $3,000 position right now. If it was, you know, you wanted— you're just getting started in closed-end funds and you're young and you're going to go into the stock closed-end funds, instead of putting $500 in any one of them, put $300 into it. You know what I mean? So that's the type of thing. Thing. When prices are up, you buy less of something. When prices are down, you buy more of it. So interest rates— so if you own a bunch of interest-sensitive securities, when interest rates go up, it's to your benefit because your prices have just gone down. And that's not a bad thing because now you can add to your securities at a lower price and a higher yield, because when they go, they They don't change the dividends they pay. It's only the price that changes.