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Economy

Yonnie3

(19,567 posts)

3. I have a conservative portfolio allocation.

Reply to Bill USA (Original post)

Fri Jan 20, 2017, 08:00 PM

Jan 2017

If the market tanks I will re-balance to my target allocation. This worked very well for me in 2008/9. I was nervous, but bought equities to balance my portfolio. I was ahead by 2010 and way ahead by the end of 2011. When I look at a chart of my net portfolio worth, 2008/9 is just a bump. I wish I hadn't run scared when the tech bubble burst around 2000. Re-balancing forces me to sell high and buy low. A bear market will be full of opportunity.

I have long ago sold all stock shares I held and only hold low fee mutual funds. These are mostly index funds. Enron taught me that individual companies were too risky.

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Highlight:

Long in the market? Still time to get out, b4 nxt TrickleDownDereg disaster [View all] Bill USA Jan 2017 OP

my brother who studies economic trends MFM008 Jan 2017 #1

Yes the next Wellstone ruled Jan 2017 #2

I have a conservative portfolio allocation. Yonnie3 Jan 2017 #3

You are a wise investor Warpy Jan 2017 #5

I live on dividends and interest Warpy Jan 2017 #4

Yes! As the old school bankers used to say, "never spend your capital." Yonnie3 Jan 2017 #6

I got the point but was kept artificially poor Warpy Jan 2017 #7

Point? Yonnie3 Jan 2017 #8