- If you don’t understand how your money is being managed you need to take an investment stress test
- There are far too many risky investments
- Modern portfolio theory is used to create allocations for portfolios
- Your asset allocation is extremely important when it comes to how your money should be invested and the affect volatility may have
- Everyone has a threshold for loss in the short term
- Allocated properly, not just diversified
- Emotions generally drive actions
- What do you do from a volatility standpoint as an investor?
- You just stay the course
- At the same time volatility provides opportunities
- Created when you utilize your buy discipline and sell discipline
- Tax loss harvesting
- Selling weaker positions to buy stronger positions
- There is nothing wrong with taking profit along the way and lock in some gains
- A pension is not guaranteed
- Portfolios are not always compared apples to apples
- When corrections and uncertainty fall on the market most investors will sell their index fund and will move to cash
- KISS - keep it simple
- The great businesses will always rebound
February 7, 2018