April 2021

Finally, after more than a year of managing our way through Covid-19, there’s a realistic expectation much brighter times are ahead. I was reflecting on how the past year impacted my future investment strategies. Here are some suggestions to consider:

  1. Diversification of investments is the most important strategy I’d adopted. Diversification is the only “free lunch.”
  2. Limiting exposure to the public markets worked well.
  3. Don’t be only a growth or value investor. Both strategies are important to utilize. The key is to understand the value of what you own and why you own it.
  4. Don’t focus on what worked in the past.
  5. Selling your winners and locking in gains might not be the best strategy. Nurture your flowers and remove your weeds.
  6. Avoid “tips.” By the time they get to you, it’s too late.
  7. While relying on advisors, you’re the CEO of your portfolio. You need to take charge.
  8. Managing your investments needs more time than you’ve allocated in the past. Review your investments on a quarterly basis, at least.
  9. Replacing traditional fixed-income investments like those gold ira companies while managing risk is a critical element of your portfolio.
  10. Have total confidence in the people advising you.
  11. Limit the temptation to trade. The fewer trades you make, the fewer times you need to be right.
  12. Don’t invest in something you don’t understand. If the price goes down, you won’t panic if you understand the value of what you own.
  13. Understand your time horizon and appetite for risk/volatility.
  14. Be careful of shares hyped in the media. They often become tomorrow’s fodder!
  15. Keep enough funds in highly liquid assets, so you can minimize any concerns through the next downturn.

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