How to Survive the Next Market investment My father has a green thumb. He comes naturally through his father. With me, a generation jumped. But that does not mean I do not want to walk around my father's property while pointing out his various plants and new projects. From spring to fall, almost every time I visited them, he had something new to show me as we walked through the yard. Or "toured the lower 40", as he calls it. "Why all the movement?" I asked when he pointed to a set of hostas that had been divided and extended to a new shaded bed. "It's about balance, Joce." The huge blue hostas had spread out and threatened to take over their former flower bed so that nothing else could grow. While my father may have been talking about rebalancing his green space, that same idea can be extended to his own investment portfolio. And it's more critical than you can imagine. Rebalancing could mean the difference between surviving the next market collapse ... Your winnings have changed the game The stock market has had a solid performance in 2017 despite the endless conversations about the overvaluation of stocks (which is very likely) and the expansion of bubbles in various sectors (and they are). The fact is that if you stayed with the shares in 2017, you are enjoying good benefits. The Dow Jones industrial index has gained 20% this year, and the technology compound Nasdaq Composite has risen approximately 19%. Even the small-cap Russell 2000 index has recovered by 12%. In the commodities sector, oil has been reduced by 7%, and gold has grown an impressive 12% despite the strength of the shares.
But those nice earnings have created a serious problem within your portfolio, and it is important that you address it sooner rather than later before a market collapse occurs. It is a good time to take a look at all the eggs you have gathered and find out exactly how you are going to redistribute them in many baskets. It's called rebalancing, and it will be the key to keeping your wealth growing in the new year. Rebalance and stay safe during a market collapse We have all heard the old adage again and again: "Do not put all your eggs in one basket". And you have not done it You have wisely distributed your investments in a variety of sectors, investment vehicles and even countries and currencies. You know the importance of correctly distributing your investment portfolio among stocks, currencies, commodities and even rare tangible assets. But the problem that happens when you have different investments that grow at different "speeds" is that your distribution in many baskets becomes more unbalanced than you expected. Let's see an example. Let's say you started with a $ 100,000 portfolio and distributed as follows: Aggressive technology actions: 50% ($ 50,000). First class actions: 20% ($ 20,000). Foreign shares: 20% ($ 20,000). Gold bars: 5% ($ 5,000). Basic products: 5% ($ 5,000). Now remember, I'm not saying that this is how you should distribute your portfolio. I only use nice, round numbers to keep maths easy. But suppose you had a great year of stock selection and your stock of technology stocks have risen 65%, your first class stocks rose 20%, gold rose 12% and raw materials rose 7%. Foreign stocks fought a little for you and are flat. That means your wallet is now worth $ 137,450. Aggressive technological actions: $ 82,500, or 60% of its portfolio. Blue-chip shares: $ 24,000, or 17.5% of its portfolio. Foreign shares: $ 20,000 or 14.6% of its portfolio. Gold bullion: $ 5,600 or 4.1% of your portfolio. Commodities: $ 5,350 or 3.9% of your portfolio.
As you can see, just by being an excellent stock selector and participating in the rally in the various sectors, your portfolio has changed in the last year to favor aggressive technology actions more than you had anticipated. In addition, their exposure in safe haven areas such as first class stocks and gold has been significantly reduced. That could put your portfolio in dangerous territory if the market collapsed in 2018 with technology stocks once again leading the way down. A time to explore new investments The end of the year is a good time to take a step back and examine your investment portfolio. If you have enjoyed some stellar profits this year, you may have to take some money off the table and move it to other investments so that it remains protected against an unexpected turn in the market. Rebalancing your portfolio keeps you in the game longer. It also gives you the opportunity to explore new avenues of investment that maybe you did not have the capital to invest in a year or two ago. Is it time to move some of your stock funds and into rare tangible assets like stamps, art or rare coins? Is it time to look for real estate as a way to protect and grow your wealth? Or maybe you need to add more income to your portfolio? As we approach the last month of 2017, let's take a closer look at your portfolio. Take the time to rebalance. Do not let it become wild. Prune it again in the right places and reap the benefits year after year. Contact: Jessica Austin Online Money Investment +1 8035741090 Support@onlinemoneyinvestment.com Related Links
http://www.onlinemoneyinvestment.com/investment-realty/