On October 4, in our larger Fidelity IRA and (most) brokerage accounts, we reduced our Fidelity holdings to a total invested position of 35%, with 5% each in seven different funds. 65% is currently in money market cash, at least for the short term.
In our smaller IRA and brokerage portfolios, we now have a total invested position of 50%, with 5 ETFs with a 10% allocation (50% is current in money market cash).
What is causing this stock market "correction?"
Clearly, rising inflationary numbers are never good for stock prices, at least in the short term. Plus, the Federal Reserve Board is again saying their 10+ year corporate welfare program called "Quantitative Easing (QE)" is slowly going to be scaled back, which of course terrifies the low interest rate addicts on Wall Street (and globally).
Add in 1) the self-destructiveness of the anti-vaxxers, 2) the "sabotage mindset" of the Trump Republicans toward most political compromise, 3) the inability of the corporate Democrats to work more effectively with the less lobby money controlled progressive wing of the party - and 4) the simple fact that fewer and fewer Americans seem to care about the truth anymore.
Unfortunately we seem to be living in a largely rudderless nation - irresponsibly fostering the pandemic deaths of family members, friends, and fellow citizens - with political cynicism and public health denial.
FYI, today's investment portfolio changes - as described above - had to wait until the end of the 3rd quarter, as selling or buying investments two days prior to the last day of each calender quarter messes with the accuracy of the Fidelity statements and our own quarterly statements.
In the near term, as soon as we see what new investment leadership emerges given the economics changes described above, we will start investing again.
Finally, until we process the numbers, I am assuming most if not all of the investment gains we achieved in our IRA and brokerage accounts during the 3rd quarter were erased in the last 10 days of September.
It was all bad timing. But such selling - as ugly as it is - now allows us to get back to a saner investment reality and begin to adjust our investment decisions for more profitably and less risk during the coming 4th quarter - and into the new year.
Stay tuned and be patient. Investment performance numbers at the end of the year are what matters most.