yes 2022 has been a year of surprises. the volatility and th...
yes 2022 has been a year of surprises. the volatility and the downside action on the market in the first quarter left a lot to be desired and many people heading to the sidelines. the consistent investor though that has seen this before has a different take and the words of Warren Buffett buy when there's blood on the street. in essence what I have been looking at are a number of factors to help me for a possible economic downturn.
first I have examined a number of trends from past cycles and saw that healthcare consumer staples and financials would be a place that I would want to selectively by doing this upcoming time. I would look at a basket approach looking at ETFs to cover each of those segments and something that is well diversified that has exposure to both the US and also the foreign markets. one of my best decisions this year has been to overweight towards international especially developing economies.
another thing that I'm doing is not to focus on the news so much the only things that I'm focusing on that have anything to do with the news what has been called headline signals. headline signals are more or less when there are headlines in the media on certain things such as the price of a barrel of oil or the price of nickel or the low of the s&p or some other index . what I have seen in my past studies is that this is sometimes a leading indicator of when to start building positions slowly. I also look at factors such as the relative strength over 10 20 and 50 days. if I see something that has been in a downtrend and it starts to do a crossover based upon relative strength I will slowly start to accumulate a position.
as far as what I would dump right now just this morning I got out of my natural gas and have been selectively getting out of energy. it's best to take profits now in these areas especially with the run-up .
first I have examined a number of trends from past cycles and saw that healthcare consumer staples and financials would be a place that I would want to selectively by doing this upcoming time. I would look at a basket approach looking at ETFs to cover each of those segments and something that is well diversified that has exposure to both the US and also the foreign markets. one of my best decisions this year has been to overweight towards international especially developing economies.
another thing that I'm doing is not to focus on the news so much the only things that I'm focusing on that have anything to do with the news what has been called headline signals. headline signals are more or less when there are headlines in the media on certain things such as the price of a barrel of oil or the price of nickel or the low of the s&p or some other index . what I have seen in my past studies is that this is sometimes a leading indicator of when to start building positions slowly. I also look at factors such as the relative strength over 10 20 and 50 days. if I see something that has been in a downtrend and it starts to do a crossover based upon relative strength I will slowly start to accumulate a position.
as far as what I would dump right now just this morning I got out of my natural gas and have been selectively getting out of energy. it's best to take profits now in these areas especially with the run-up .
I would say to sum it up the safest investment during this time would be your investment and gaining additional knowledge about the markets thank you.
Disclaimer: Community is offered by Moomoo Technologies Inc. and is for educational purposes only.
Read more
Comment
Sign in to post a comment
