Re-learn investing and try new strategy
Will you review and change your asset allocation? Which funds, bonds, or other asset classes do you think will help investors hedge against uncertainty in the current economic climate?
We all know that FED will continue to increase interest rate until inflation is back to 2% about a year ago. To reduce risk, I'm shifting my portfolio to the following gradually:
1. Increase Emergency fund to 9 months in preparation for the coming recession. The recent Silicon Valley Bank collapsed (and its dominos effect on other banks) is a wakeup call that recession is coming or already here.
2. Diversify portfolio to more inflation resistance investment such as non-cyclical stocks or etf e.g. medicine such as $Pfizer (PFE.US)$ and $Moderna (MRNA.US)$
3 Cash plus fund for passive income
We all know that FED will continue to increase interest rate until inflation is back to 2% about a year ago. To reduce risk, I'm shifting my portfolio to the following gradually:
1. Increase Emergency fund to 9 months in preparation for the coming recession. The recent Silicon Valley Bank collapsed (and its dominos effect on other banks) is a wakeup call that recession is coming or already here.
2. Diversify portfolio to more inflation resistance investment such as non-cyclical stocks or etf e.g. medicine such as $Pfizer (PFE.US)$ and $Moderna (MRNA.US)$
3 Cash plus fund for passive income
Diversify portfolio to less volatile low risk investment.
Read my previous post:
Invest safe in a bear market by cash plus/MMF
3. Artificial Intelligence related stocks and etf
We ride on the ChatGTP mania and rally it's brought to this sectors.
Read my previous post:
AI next level - Artificial General Intelligence (AGI)
4. Covered Options trading - double win strategy
I chose covered options to reduce the risk. In a bear market, sell put to earn premium and buy the stocks at cheap price. In a bull market, sell call to earm premium and sold stocks at high price. It's not easy to implement hence learning from the expert and practice is important.
Read my previous post: Wheel Option Strategy for beginners
Bottom line
This coming recession is unique - prolong high inflation with uneven negative economic growth. As some sectors recover faster than others, there's no clear sign that recession is here. We can't wait for FED to pivot but need to identify sweet spot (sectors and regions that recover faster) and invest quickly. Hence we need to re-learn investing and try new strategy such as Factor Investment. Moomoo provide the features I need - learn from expert in chatgroup and practice new strategy in paper trading.
Read my previous post:
Invest safe in a bear market by cash plus/MMF
3. Artificial Intelligence related stocks and etf
We ride on the ChatGTP mania and rally it's brought to this sectors.
Read my previous post:
AI next level - Artificial General Intelligence (AGI)
4. Covered Options trading - double win strategy
I chose covered options to reduce the risk. In a bear market, sell put to earn premium and buy the stocks at cheap price. In a bull market, sell call to earm premium and sold stocks at high price. It's not easy to implement hence learning from the expert and practice is important.
Read my previous post: Wheel Option Strategy for beginners
Bottom line
This coming recession is unique - prolong high inflation with uneven negative economic growth. As some sectors recover faster than others, there's no clear sign that recession is here. We can't wait for FED to pivot but need to identify sweet spot (sectors and regions that recover faster) and invest quickly. Hence we need to re-learn investing and try new strategy such as Factor Investment. Moomoo provide the features I need - learn from expert in chatgroup and practice new strategy in paper trading.
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