As people are looking forward to New Year 2023, the future does not seems very bright!
Following are the looming issues which can affect the global financial system & stocks there after:
- UK on brink of recession
- USA recession chance 50:50 based on FED rate increase
- New Covid-Variant Pandemic Threat arised from China & Japan
- Government-backed Digial Currency Disruptions
Additionally, global leaders also warning of recession: Jeff Bezos (Amazon), Elon Musk (Tesla)
Long-term investor should not worry, but should be cash-sufficient to capitalize on the bear market opportunity arrived if any:
- Keep 70:30 ratio (70% stocks : 30% cash)
- Keep 50:50 ratio (if you are conservative investor)
Cash: Cash or Cash-equivalent – Online Fixed Deposits which allow faster liquidation, High-yielding bonds from Trustable Partner (goldenpi.com ?) ensuring easy liquidation
Strategy: Sell 50% of those 100% plus gainers – so your invested capital is back & you have surplus cash.
Bear Bottom: Increase 30% on existing holdings on 30% corrections if any. New bear market gems will be provided if any opportunity arrives.
Note: No questions entertained on this post as this is general informational.