nba-basketball.jpg

Anyone who knows me, knows I am a Spartan fan.  It’s been difficult the past few months to be a fan of Michigan State.  It seems that the hits keep coming.  All I want to do is to crawl under a rock and hibernate.  Especially today, when the Michigan Wolverines play for the National Championship. 

It’s the same way with the stock market.  Today, the market cratered on the news that the President is “going after” Amazon – whatever that means.  So, a stock that has lead the way is now under pressure.  As is Facebook and other tech companies that have seen their stock prices skyrocket over the past few years. 

But sticking your head in the sand is no strategy.  Instead of looking the other way when the market goes south, I prefer to look at my plan and to make revisions, if necessary. 

 

Here’s what I am doing right now:

 

  • Looking to see when I’ll need money
    • If it is within the next 24 months, adjust the portfolio to free up cash
    • If it is between 2-5 years, make sure that it is in a lower risk/lower return asset class
    • If it is more than 7 years, keep it invested in stocks

 

  • Looking at the asset allocation of the portfolio
    • Because of adjustments, the mix may have changed from the target
      • Adjust accordingly

 

  • Creating an investment “wish list”
    • What stocks would I like to own that have been too expensive recently?
      • What is a good entry point to buy them?

 

  • Reviewing my financial plan
    • Am I still on track to achieve my goals given the stock market pull back?
      • What changes do I need to make?
      • Add more money?
      • Work longer?
      • Reduce expenses?

 

Tomorrow there will be a new National Champion.  I know it will not be Michigan State.  And tomorrow the stock market may go down again.  But I also know that everything runs in cycles, and that I have a plan.  Patience is a virtue, especially when you are an investor or a sports fan. 

My plan for tonight is to watch the Tigers.  Thank goodness for baseball season…

 

Joe Smalley

Smalley Investments

213 East Saint Joseph Street

Lansing, MI 48933

517-487-4850

 

Securities & advisory services offered through Commonwealth Financial Network, member FINRA/SIPC, a Registered Investment Adviser.