Do you buy or do you sell a 5% correction in a major bull market? There’s only one answer.
Look at it this way. The Brexit low was approximately 1980 in the SPX and the recent highs were approximately 200 higher at 2180. If I can buy a 5%, or 100 handle, market correction on market volatility via FOMC hype concerning a possible .25 rate hike from .50 to .75, then that exactly what I am ready willing and able to do.
This is to be done with deep pockets, meaning that I am not trying to buy the low tick. But I do feel that it is a gift to be offered another 5% discounted buying opportunity when I anticipate that we will soon be talking once again about yet another series of new all-time market highs.
Look, sooner or later the Fed is going to have to act. When they do you can look for a knee-jerk reaction, or in this case “over-reaction”. I am simply suggesting that we view this as a buying opportunity. Think of it as having some of your favorite stocks offered to you at a 5% discount and gobble them up as you should. If you want to keep it simple then shop for the SPY at about 208 and enjoy not only the discount but the dividend as well.