Quote:
Originally Posted by Babubhat
Stocks and bonds in bear market. Crypto and commodities getting crushed today. Housing prices have topped. Cash and being short look like the only positive returns. Big liquidity trap.
|
You will never be able to avoid a loss to your portfolio in a major correction. You can greatly minimize the impact with a proper allocation—well chosen stocks and fixed income securities. You will not protect yourself by going “all cash” because you’ll miss the beginning of the correction and you’ll absolutely miss the beginning of what is usually a very quick recovery. And while you’re in cash, inflation will kill you.
ALLOCATION is the key to minimizing the effect of a major correction!