this post was submitted on 30 Jul 2026
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politics

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cross-posted from: https://lemmy.zip/post/68835958

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[–] OnyxRex@lemmy.dbzer0.com 3 points 17 hours ago* (last edited 17 hours ago)

I have some basic understanding of finance (and I mean basic), so take this as an observation rather than investment advice. If your retirement plan allows you to change your asset allocation, and you have a high-conviction thesis that a significant market event is about to occur, it may be worth temporarily rotating from a growth-oriented allocation into a more conservative allocation to reduce downside exposure.

Under normal circumstances, attempting to time the market is a bad idea, and financial advisors or plan managers will usually push you away from doing so. However, there are rare situations where it's clear as crystal what's happening. In those cases, reducing equity exposure and increasing allocations to lower-volatility assets for a short period may be a reasonable risk-management decision.

Using the recent SpaceX-related market activity as an example, I find it difficult to believe that any fund with a genuinely conservative mandate would have maintained meaningful exposure to assets directly affected by that event. A conservative portfolio, by definition, should prioritize capital preservation over aggressive growth and generally avoid concentrated exposure to higher-risk investments.

You generally can't tell them, "I don't want this stock," when dealing with index funds, but you can get yourself out of the fund entirely while it's poisoned. Unfortunately, my company was changing providers right when the SpaceX shit was happening, and I couldn't make the change myself.

I haven't been keeping up with the bond market but last I heard it was it's own shit show so I'm not really sure anything is 'safe' these days.