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Investment strategy for Fed Rate Cut: Distribution and Diversification

I will continue to use the 4D investment strategy to build my portfolio. Let me highlight my strategy:
1) Diversification
It proves to be effective in reducing the volatility risk caused by the rotation of funds from mega-cap stocks to medium and small ones. It is important not to put all eggs (cash) in one basket (one stock). I invested in low management fee ETF like S&P500 and will continue to use DCA.
Investment strategy for Fed Rate Cut: Distribution and Diversification
2) Distribution
If the Fed cut rate in September, stocks especially the technology sectors should rally. But the rally magnitude and timing may be different because the US economy may be facing recession risk. Hence I distributed my investment according to risk level:
10% - high risk
20% - medium risk
70% - low risk
This will ensure that I will not miss the boat when the rally comes.
Investment strategy for Fed Rate Cut: Distribution and Diversification
Bottom line
You can read the other 2D (Discipline and DYODD) here:
2024 H1 Recap: Four "D" Trading Strategy and H2 Outlook
There are still uncertainties that may affect the market trending. But my H2 outlook is optimistic with caution. Hence I have prepared an emergency fund to tide over a bear market if a black swan event does happen.
Disclaimer: Community is offered by Moomoo Technologies Inc. and is for educational purposes only. Read more
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    I reflected trading experiences by writing journals. My comments are for educational purposes not financial advice.
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