The Next Big Crash - Are You Prepared?

[davidsim]

Thanks for the advice. I still have much to learn. =)

I will buy back some counters when their prices are slightly lowered.
Waiting for the financial results of a few stocks on watchlist too.

The bonds are 20-year ones.

If price continues to rise, there will be opportunity costs for me. Need to learn from lesson and move on~

Yes I agree we all need to learn our own lessons.

I would like to share this with you though. If I assume you are still relatively young, every month from now you are going to get a new injection of cash. Therefore, if you still keep your whole portfolio in cash/bonds, you effectively have a very negative view of the market.

If there really ends up being a crash in the near term, via the monthly cash infusions from your job you will still be able to take advantage of it somewhat.

However, if now is the start of a bull market, you will be caught out cold unable to benefit at all. Given that stock markets move in spurts, if you do miss out on this rally, you will have to wait a considerable amount of time before prices rally again. Also, what guarantee is there that future prices will drop below current levels?

Still I must say that in the end everyone has his own way of investing. For me I know that I have below average skills, knowledge, ability, tools at my disposal, etc so if I am able to perform averagely I am already very happy as I have far outperformed my potential.

Good luck on your journey.