GameStop And SPACs Making You Think The Market Is Frothy? Here Are Some Moves To Consider

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Are GameStop and SPACs making you think the market is frothy? Here are some moves to consider:

Still it’s hard to look at the markets on any sort of medium-term view and not see a degree of downside risk, even if SPACs and meme stocks weren’t further cause for concern. Here are a few actions you might consider.The first step may be to rebalance. Chances are you have a target allocation for your portfolio. It may be that your allocation to U.S. stocks is now a lot higher than you planned simply because U.S. stocks have had such a stellar run compared to everything else in your portfolio.

, though to be fair, it’s not that common. Rebalancing may help control your portfolio risk for that scenario if it improves your diversification.A sector strategy is to diversify by style, country or asset class. If you have all your money in U.S. growth stocks you may be more exposed than you wish to be. There is evidence that the same data that implies that U.S.

Still, at a time when other valuations appear less stretched than the growth stocks in the U.S. market, it may make sense to take a look at your portfolio. Make sure your allocation still matches your initial intent. Consider perhaps including some diversification across countries, asset classes and investment styles. That’s often considered prudent advice for all market conditions. It may prove especially useful in the current environment.

 

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SPAC investing has been less profitable for individual investors. Most SPACs underperform the stock market and eventually fall below the IPO price. Given SPAC's poor track record, most investors should be wary of investing in them.

Lol 😅 These might be a bad move Imma be aware bout these shits its sucks a little bit..

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