Is there any safe portfolio left in today's bear ๐ป market? How do u build ur portfolio to lower the risk?
Personally, I think that there is no much option to play...
For me, I preferred toreduce my US stock position(which I did for my US portfolio since sep 2022 CPI result) &parked my cash in the MMF temperory.
However, some may disagree as inflation is as high as 5% & the MMF is lesser % = basically lossing money ๐ฐ. Well, this is one's perspective on how to see thing. I'mtiming the market& waiting to buy the dip. It's because I'm confident. Even if I'm wrong about the US stock market, the most I will move back to buy SGX stock at the dip.
There are also other ways to protect ur portfolio, for exampleshorting with option+.Direct shortingthe market is only for the pro / the more experienced investors/traders. I'm still not at that level yet. Can alsosell call optionto reduce the damage to ur portfolio if u know how to use option.
Or u can buyinverse ETFwhich is good for a short-term holding in the bear ๐ป market.
The$SPDR S&P 500 ETF (SPY.US)$is so volatile that it make no sense at some point. However, I'd chosen a direction & I'm confident on it. It just a matters if I can time โฒ๏ธ the market within the range of the lowest correctly.
Welp, looking at the bright side, u can just DCA slowly ๐ to reduce ur average cost if u think the price is at a discount to u. It may be once in a life time to get such great discount price. However, it may take years for the economy to recover, given how bad it'd worsen& I think that the market has yet to price in the valuation calculation correctly yet... So, u may not be seeing ur portfolio green anytime soon if u bought at the high.
DYODD before investing
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