Dear readers, the stocks markets have corrected substantially followed with rebounds here and there. In a nutshell, the stocks markets now are really volatile.
I have been sharing with readers that nowadays the general trend for the stocks markets is a downtrend. No point trying to trade against a clear market trend that is down. Short-term profits are unlikely to triumph over a longer-term southing of the stocks markets.
To profit from the stocks markets corrections, one must be steadfast in one’s investing strategy. Always invest at the stocks markets’ bottoms. We cannot for sure invest in the market’s bottom-most but make sure you don’t miss one of the bottoms of the stocks markets.
Yes about the investment warchest that I have been talking about. An investment warchest needs time to accrue diligently and humbly. As to how much is sufficient for an investment warchest, well in my thinking I don’t think there is a one fixed answer. Depending on one’s incomes, one’s needed expenditure and commitment, a warchest could be $50K or $500K. What is more important in relation to the discussion of an investment warchest is this: how much of your total portfolio is in cash and how much is in equities.
In this stocks markets backdrop, I would think a portfolio percentage of more than 50% in equities is risky. Anything that is above 80% in equities is rather risky. For myself, I have less than 15% of my total portfolio in equities. Most of my portfolio is in cash and short-term fixed deposits and which will readily form part of the investment warchest when the stocks markets correct.
That’s it for my insights today. I Thank you once again for your support of SG STOCKS INVESTING, your Money and Lifestyle magazine! Connect with me here to follow the daily exciting and useful posts on these two blogs, Thank You for your support!
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