Sunday, February 4, 2018

Seeing Red?

Just last month, I had written about bull market investment strategies, and within the past week, we had seen some red. No doubt red is good for the upcoming Lunar New Year festivities, but seeing this colour in the markets is a real bummer. Ah, such is the roller coaster nature of the financial markets.

I have been hearing from some sources, online and in person, that the bear is going to come, and along with it some panic and a possible trip to a reservoir that bore my namesake. First things first, let us all calm down.

Is this going to be just a correction? Is this going to be the beginning of something worse? Is this going to be the next GFC?

Well, I don’t know.

But, as investors, particularly the Bedokian Portfolio ones, we must be prepared. Again, if you are in the passive side, just wait for your next rebalancing cycle and reallocate accordingly, and move on. If you are in the active side, there are a few strategies to adhere to, like the 10-30 Rule1, look out for bargains in fundamentally strong equity/REIT counters that fall for no reason, or consider other asset classes.

Remember, investing is a long journey that goes uphill and down.

1 – The Bedokian Portfolio, p119-120

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