Two days ago, Rosi and I earned $105.00 per contract writing covered calls on SPY fist thing in the morning, expiry date at the end of the same day. We have enough SPY shares to be able to live comfortably on that income. Look at our previous posts dealing about what to do in any particular day. Today's stock market is the most overvalued in history. We should welcome a slump to to allow us buy the market at bargain prices and rebalance our portfolios. U.S. presidents have enormous power but there is nothing they can do about the stock market levels they inherit.
How expensive markets are today is the best predictor of stock market returns over the medium term. Trumps support of business will likely continue to push the market up – for a while. Make sure you have 50/50 asset allocation (60/40 also works well as does 55/45 or any similar ratio) and rebalance your asset allocation every time market movement disturbs it. Do not try to time markets. In a rising market, cash is trash. In a declining market, cash king. Intelligent investing requires no luck. Good luck!
