Is there any safe portfolio in bear 🐻 market?
Is there any safe portfolio left in today's bear 🐻 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 to reduce 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 💰. Well, this is one's perspective on how to see thing . I'm timing 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 example shorting with option +. Direct shorting the market is only for the pro / the more experienced investors/traders . I'm still not at that level yet . Can also sell call option to reduce the damage to ur portfolio if u know how to use option .
Or u can buy inverse ETF which is good for a short-term holding in the bear 🐻 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 ⏲️ the market within the range of the lowest correctly .
Welp, looking at the bright side, u can just DCA slowly 🐌 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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