With recent market slight correction, I can see many anxious and worried faces. Some of the investors' portfolios have went to the red and have not much cash on hand. I am just wondering, these investors can only perform well during bull run? It is fine if they hold long term and that is what investment is about.
Take Sanye's recent sharing. He surrendered his insurance life policy and get back more than double of what he has paid. Many people are sceptical about insurance and they think they can do much better by buying term and invest the rest. Is it true? Again, I am not advocating buying insurance, but insurance at some points of our life is important to mitigate risk. Even the rich has insurance. Just don't over-insured or buy nonsense policy that don't value-add to your life.
I am not pouring cold water or add salt on the wound for those have been injured recently in the stock market. I wanted to remind myself of my financial goals and my asset allocation strategies. Let us think about what are the possible investment vehicles that we can tapped on.
One way is to invest in index fund. You will be fine if you stick to your asset allocation strategies. You wouldn't be ultra rich by doing so, but if it met your goals, why not? Don't have the "wow" factors?
If you are an active investor selecting stocks individually, do remember to apply asset allocation strategies and stick to your financial goals. Stop competing with others unless you truly enjoy it. It is extremely simple, buy low and sell high. I know it is impossible to time the market. This require self-awareness. Do some research about stock market, come out with your strategies and stick to it.
Never, never follow what other bloggers are buying. Extremely dangerous approach. If you are always competing and envying investors can earn xx dollar because of this stock and that stock, you are in a danger. You are not a sheep and you don't need to be collectively uniform. You should ask yourself what is your financial goals and plan a strategy. Stick to it and implement some flexibility to it.
Oh yeah, credit to my wife, I have a new super frugal daddy mascot!
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