Tactical Opportunities

For pilots with solid financial foundations looking for enhancements:

Preparation Before Opportunity

• Portfolio Assessment: Evaluate your current asset allocation. Is it aligned with your time horizon and risk tolerance?

• Tax Considerations: Determine which accounts (taxable vs. tax-advantaged) are most suitable for various types of investments.

• Liquidity Planning: Create a dedicated "opportunity fund" separate from your emergency fund for market downturns.

Strategic Approaches

1. Sector Rotation Strategy: The market correction hasn't affected all sectors equally. Consider:

   • Which industries are experiencing temporary setbacks versus structural decline

   • Sectors with strong long-term tailwinds despite current headwinds

   • Areas where your professional knowledge gives you insights

2. Valuation-Based Entry Points:

   • Learn basic valuation metrics (premium/discount, P/E ratio, PEG ratio, P/S ratio)

   • Set target share prices for the ETFs you've researched

   • Create alerts for when stock indices (S&P 500) hit your predetermined entry points

3. Dividend Strategy Enhancement:

   • Market corrections often increase dividend yields

   • Look for ETFs with histories of maintaining or growing dividends through previous downturns

   • Consider dividend aristocrats (EFTs that hold companies that have increased dividends for 25+ consecutive years)

Risk Management

• Limit position sizes to 3-5% of your portfolio for any single ETF

• Develop a plan for what would trigger you to sell (price targets, fundamental changes)

• Consider using ETFs with options strategies for additional income or downside protection