Not much has changed in the last month. That’s the conclusion in reviewing the data points in June’s RAGE Gauge. As I mentioned in last month’s gauge, investors seem to be complacent and that feeling continues today. It never ceases to amaze me how quickly investors forget about the devastation markets can bring. They troll the internet for articles that support their points of view. And all is right in their world. Until it isn’t.
This is the perfect time to imagine the market falling by 40% to see what that would feel like. How would your overall portfolio handle it? Have you done enough to protect your downside? In my experience, most have not. They realize the pain when it’s too late. Selling your winners isn’t easy, but it could be the best thing for you to do today. An easy way to do this is to set a goal, let’s say to be completed by the end of summer, and do a little bit at a time.