8/17/21 Stock Market Update
We’ve just been hit with a deep stock market correction, lasting all of 2 hours. Just kidding, but we did get a healthy sell off before the next rally to S&P 500 4500-4600. A sell-off is usually around 3 days, so there could be some more pain ahead tomorrow. My growth stocks got hit harder than the broader indexes, and along with the leverage, portfolio dropped 10%. Small cap stocks also got hit hard. Thankfully my margin requirement went down along with the stocks, so no margin call. A margin call usually happens when the margin requirements go up. My game plan I usually have plenty of TMF (treasury bonds) to sell to prevent a margin call. TMF has been going up during this sell off. It allows you to take greater risk and this has proven itself time and time again. Thus far the sell off is minor. Have been getting one every month. Not making any changes yet. My gameplan if it is a larger 10%+ correction is to sell my TMF. Once 10 year treasury yields rise back to 1.7%, ...