'Twas the week before Christmas
when all through the house
Not a bearish put was stirring,
not even a downtick the size of a mouse
Universally bullish calls hung in the brokerage accounts with care
In hopes that St. Nicholas would soon be there
The bulls were nestled all snug in their beds
While visions of multi-baggers danced in their heads
And mama in her $QQQ and in my large cap
Had just settled our brains for a huge Santa gap
When out on the Nasdaq there arose such a clatter
I sprang to the futures to see what was the matter
Away to the hedges I flew like a flash
Tore open the $VIX and rolled in the cash
The moon on the breast of the new fallen $SNOW
Gave the lustre of September to stocks falling below
When what to my wondering eyes should appear
But a 5% dip and plenty of fear
With fading of old market drivers, so lively and quick
I knew in a moment it would bring a rally of St. Nick
One little push-pull I'm running into is that I'm selecting quality securities that appreciate; the "Active Satellite", but I'm sizing positions smaller for risk mgmt. Desire to increase size is there, but it has to be balanced into the overall picture & the portfolio as a WHOLE.
Generally, a normal #ActII#Center investing portfolio is tailored to the individual, but there are some broad principles that I've applied across portfolios. "Passive Plus" generally has a Passive Core & Active Satellite construction with a broad diversified asset allocation.
The Passive Core is usually around 75-80% of the portfolio consisting of low-cost tax efficient index ETF's covering most equity asset classes (Large Core, Large Value, Mid Core, Mid Value, Small Core, Small Value, EM, Int'l LG/SM) w/exposure to ALL at ALL TIMES.