There is generally no point in doing this, keep a constant asset allocation that match your risk appetite, otherwise you're just playing the casino.

Timing the market is bad, but I'm reading "risk averse" as selling equities and buying bonds.

The problem is that this recent equities run has been extra terrible for more conservative 60/40 portfolios [0].

[0] https://www.morningstar.com/economy/6040-portfolio-150-year-...

> selling equities and buying bonds

There's an intermediate option: sell high P/E stocks and buy lower P/E stocks with dividend paying history. There are ETFs designed for this purpose too.

That is also what I read in going risk averse.

In particular bulking up in EM, EU, and small cap. And slimming down in us large cap.

Uhhh...you're describing something like QAI? [0] And you're going to short a portfolio of TSLA, NVDA, AMZN, META, GOOGL, MSFT, AAPL, NFLX, AMD...?

That's crazy.

[0] https://finance.yahoo.com/quote/QAI/

I am indeed short TSLA (or rather, am taking an inverse position), and have greatly reduced my exposure to NVDA, AMZN, META, MSFT, and AAPL. I keep some exposure to GOOGL, NFLX, AMD, because I believe they are going to "win" in their industry in the long run. I plan to keep exposure to them for like 10+ years.

I have a blog post about the inverse TSLA position here: https://bagelpour.wordpress.com/2025/11/30/taking-an-inverse...

Almost all of the gains on SP500 are from 7 stocks - I'll let you guess which 7. The market overall is nowhere near as exuberant.

https://www.washingtonpost.com/business/2025/11/24/sp500-sto...

The market can stay insane longer than you can stay insolvent.

Also, its possible that the market thinks job losses are good (aka that AI is replacing jobs)

The brutal truth…

Stocks go up, wages and income go down, things keep on keeping on because AI has quietly replaced you.

First time?

Except in reality this isn’t happening outside of press releases. God y’all drank the koolaid.

They say time in the market generally beats timing the market

You and me both, but working poors like us should be investing for long-term gains, not short-term returns. I put my money into bonds and international indices because I want to be better protected when the AI CAPEX bubble pops here, but I have no idea when that’ll happen.

We can’t time the market, but we can protect the scraps we’ve accumulated at least.

Stock market is not the economy