Protecting Our Portfolio From The Next Bear
Portfolio Management - Diversification Is Your Friend.
http://createwealth8888.blogspot.com/2009/10/portfolio-management-passive-income.html
"However beautiful the strategy, you should occasionally look at the results." - Winston Churchill
Let look at the results:
As on last Friday closing @ 2684, STI has lost -8.5% of its value from its recent high @ 2934 while my portfolio value has lost -4.1%.
What really help?
Diversification Is Your Friend
It is true again. It helps in my own portfolio management. Not all of them are down at the same speed with the market.
Dividends
Periodic collection of stock dividends is another important factor to provide cushion against falling portfolio value in a bear market. Where Does The Money In The Stock Market Come From?
Real wealth is generated from stock dividends so don't forget to collect them when you can.
Realized Profits
Portfolio Management - The Importance Of Realized Profit
Re-investing Dividends and Realized Profit
It will be easier to accumulate sufficient fund using both dividends and realized profit to diversify into other counters and sectors.
Three Musketeers
Together dividends, realized profit and diversification are The Three Musketeers to fight the Bear.
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