Sunday, 7 February 2010

Protecting Our Portfolio From The Next Bear - Revisit

Market Truism: Every Bear market is followed by a Bull Market, and every Bull market is followed by the Next Bear market.

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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