There is a lot of doomsdaysayers and a lot of 'it only goes up' folks, but if I have pretty comfy life, don't care about being multimillionaire, and would like to have cash and still would like to be invested in the market, what would be the best investment strategy?
I have a good amount of savings I would like to keep until retirement in 20+ years, stable income of which I can confidently put 50% in the investment/savings purposes.
I have come up with the idea of keeping 10% savings invested. Bull runs make me feel good about gians, bear runs make me not care about a lot.
But I don't know how should I handle future income inflow and adjust for the significant bull and bear runs, and how to act on future income rises and falls, crazy inflation.
Any smarter strategy advices or just keep at it?
Fearful investing strategy
byu/WalrusSpecialist706 ininvesting
Posted by WalrusSpecialist706
3 Comments
nobody (should) care about doomdaysayers, bulls, bears, its just stupid people saying stupid things.
just invest broad, let it linger and grow, if you want cashflow go into bonds or dividend paying etf’s.
there is no magic to it, really, longterm itll go up, thats all you need to know.
If we are in an AI bubble then just invest in not tech
You might be interested in risk parity. I recommend the book failsafe investing. The author is the guy who invented risk parity and there has been a bunch of risk parity portfolios that have come out since then. The three most common are the permanent portfolio, the golden butterfly which is a variation of the permanent portfolio and the all weather portfolio.
The idea is that the economy goes through different phases and we never know which phase we will enter next. So the best thing to do is have an allocation that does well in every phase. You lose a bit of upside versus being in %100 stocks but the portfolio almost always goes up even when stocks are down and everyone is freaking out. Risk parity also has very low volatility, no wild swings like being in %100 stocks. Its also great for retirement because there’s always something in the portfolio that is going up which means it can be sold to fund living expenses. Versus being in %100 in stocks where a retiree has to sell the stocks to fund expenses even if stocks are down and they are selling at a loss to their average purchase price.