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URL:  https://boards.fool.com/quotmonkey-it39s-a-question-of-strategy-how-34131675.aspx

Subject:  Re: Stock market correction and SaaS stocks Date:  2/11/2019  7:01 AM
Author:  GrowthMonkey Number:  51578 of 57982

"Monkey,

It's a question of strategy. How much upside potential are you willing to sacrifice in order to protect against downside? This board's answer is "not much". Basically, keep some cash on the side to buy stocks on the cheap when a correction comes.

You can also buy bonds and stocks like WM or NESR if that makes you sleep better, nobody will hold it against you."

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Strenlis,

My entire portfolio is invested in 22 high growth companies (20% in SaaS stocks) and I sleep well every night because I beta hedge my entire portfolio during each and every stock market downtrend.

During last year's market pullback, my indicators told me to hedge in early November and my portfolio was more or less hedged (my account equity remained flat +/- 50 bps) until 8th January.

So, given that I beta hedge my entire portfolio (this strategy has proven to be cost neutral over the last 30+ years), there is no need for me to invest in 'safe stocks'/bonds and I never worry about bear-markets and recessions.

Best,

GM
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