So finally more drama on the horizon with markets sliding downwards in the perfect storm of a stalling Chinese economy and a falling oil price (the latter obviously fuelled in part but not entirely by the former).
Whilst I’m aware that my portfolio will no doubt fluctuate to a similar extent that the wider market does. It should given the quality of most of the stocks within it, recover along with it down the line. However i can’t but help think that this latest turmoil presents another great buying or reshaping opportunity for my portfolio.
This poses me a dilemma over what to do. My choices so far as I can see are;
1. Sell out now crystallise profits and buy back in when things stabilise at a level close to where the consensus of a recovery appears likely. Theoretically if timed more or less correctly, I’ll be sitting on a larger holding for the same initial investment.
Clearly very risky due to criticality of the timing of exit and re-entry back into each stock holding. Wrong timing decision could exclude me from re-entry. However a tempting choice to attempt given the potential gains.
2. Hold current portfolio but increase holdings of the most promising stocks as the price falls. Seems sensible along with reviewing watchlist to see what’s become enticing.
3. Do nothing at all.