As investors we should be thankful.
You may be asking yourself, for what?
Well, the market has handed us a gift . . . a speedy recovery from the virtual bear market of late 2018.
It’s also handed us a stark reminder.
The sharp decline during the last three months of 2018 was rough. I’m certain many of you experienced 20% to 30% losses in your overall portfolio. So again, the decline should remind you just how important it is to broaden your horizons as investors.
You can’t simply allow your long-only (bullish), buy-and-hold portfolio to dictate how much money you stand to make or lose.
Why would you want to make the same mistake again?
As a pragmatic investor you must prepare for all market scenarios. Again, the latest advance should be seen as a gift from the market gods. It should get you up off your back-end to start using other investing strategies . . . strategies that allow you to make money in sideways or even bearish markets.
You need to protect your hard-earned profits. This is how professionals invest and there is no reason why you should not be doing the same.
You don’t need to allow the market to dictate your success when you have the ability to dictate your own success. Click here to learn how.
Now, I’m not here to discourage buy-and-hold investing. It’s a wonderful strategy when the market cooperates. I say “cooperates” because Ed Easterling of Crestmont Research has proven through extensive research that the success of buy-and-hold investing relies on “when you start and when you finish.”
For example, “$10,000 invested at the end of 1961 would have shrunk to $6,600 by 1981. From the end of 1979 to 1999, $10,000 would have grown to $48,000,” Easterling reported.
Remember, a buy-and-hold strategy is just one strategy . . . and if you follow the investing mantra “Don’t put all your eggs in one basket,” then why would you put all your eggs in one strategy: buy and hold? This naïve approach ignores the mantra we all associate with sound and responsible investing.
In my mind, true diversification means using a variety of investment strategies . . . approaches that take advantage of different market environments.
As for my approach, I’m using a few easy-to-understand investing strategies as a way for investors to hedge their overall portfolio while still being able to bring in consistent income every month. I’m essentially creating a dividend up to 12 times a year. It’s a dividend I can use for income whether the market is in bull OR bear mode . . . or to simply lower the cost basis of my overall portfolio.
I’m not about to allow myself to lose money because the market happens to move lower. We’ve been spoiled over the past nine years. Now it’s time to give our portfolios a reality check.
Don’t allow yourself to ever again be vulnerable to a market decline. Let me show you how to put my investing strategies to work. Click here to get the details.