Business plan: If SPX bottom is around 1200 to 1500

April 18, 2020

Introduction

I did not make profit when SPX went up from 2900 to 3300, and then dropped from 3300 to 2200, and went up from 2200 to 2800. I will continue to stay in the market, and go through bear market to lowest 1200. How should I do better for next crash?

Business plan

It is important for me to do pre-mortem analysis. I have to analyze how long I can make even as a long term investor. When market calms down next few years, I should be glad to learn that I own something valuable and discounted prices.

I need to look into those following areas:

1. Put at least 50% assets on cash, wait on sideline until the market goes down below 2200 SPX; 
2. I need to time the market down turn from 2800 to 2200 SPX, avoid this loss of 600. 
3. I need to think about SPX from 2200 to 1200, how to invest on equities? 
4. Will continue to work on.