As from April 2013 my Journey in Investing is to create Retirement Income for Life till 85 years old in 2041 for two persons over market cycles of Bull and Bear.

Click to email CW8888 or Email ID : jacobng1@gmail.com



Welcome to Ministry of Wealth!

This blog is authored by an old multi-bagger blue chips stock picker uncle from HDB heartland!

"The market is not your mother. It consists of tough men and women who look for ways to take money away from you instead of pouring milk into your mouth." - Dr. Alexander Elder

"For the things we have to learn before we can do them, we learn by doing them." - Aristotle

It is here where I share with you how I did it! FREE Education in stock market wisdom.

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Value Investing
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Sunday, 16 July 2017

Is there such a thing as a 'recession-proof' portfolio?


Read? Is there such a thing as a 'recession-proof' portfolio?

Good reminder to us to build 'recession-resistant' wealth or net worth!

Uncle8888 fully understood this concept of 'recession-resistant' wealth building concept and not all into investment for higher return at all times.

Uncle8888's Three Taps Solution model should be one of those  'recession-resistant' wealth building concept or type.




10 comments:

  1. CW888, can I said that your Tap 1 is only flowing (income) after age 55 and age 65.

    Age 55 - Interest from OA
    Age 65 - CPF annuity

    So, prior to age 55, there is no 'recession proof' portfolio lah.


    ReplyDelete
  2. From personal experience during AFC & Dot.com Bust/911/SARS, the best recession proof for my portfolio was having a "iron rice bowl" civil service job!! Haha!!!

    If a person has to worry about job security and insufficient passive income to replace employment income, then usually won't be psychologically prepared to buy when streets are awash in blood, even if got big warchest.

    ReplyDelete
  3. Think of it. Retirees are in better position to build recession-resistance portfolio since they have no concern over loss of income due to retrenchment.

    ReplyDelete
  4. True.

    It's also true retiree must remeber:-

    (1)"Don't Take More Risks Than You Can Accomplish Your Goal".

    (2)“It is worth remembering that winning the long-term investment game has more to do with avoidance of losses than the capturing of gains. It is a function of math.”

    My bad: "It's time to "Stop thinking of or dreaming of BAGGERS".

    "Start thinking of Conserving what you have if possible."

    "If have to draw down capital, try to ensure it will last your
    lifetime".

    ReplyDelete
  5. Which i did the very first time i invested in the Market.

    ReplyDelete
  6. The real lever to make recession proof portfolio is asset allocation. If you allocate a smaller and yet comfortable percentage of your wealth to the volatile stock market, you are naturally making your portfolio recession resistant

    ReplyDelete
    Replies
    1. True but some will feel that they missing out on opportunity cost. No free lunch in the market without affecting our emotions.

      Delete
  7. Asset allocation in % terms of not putting all your eggs in a basket i think is a must, when U are a HNI or a retiree who has a little nest eggs.

    Young beginners just have to take more risks to build up their money nest eggs.

    Unless they are HPI, then the saving route may be better route to a moneyed nest eggs.

    Not so much needed to put in the market.

    But their little $ allocation in the market maybe a lot compare to low to average earners, already.

    That's LIFE.







    ReplyDelete

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