I know some of you will disagree with the proposition that we are about to experience a bear market or even a steep-ish correction in 2022 and I’m not here to debate that.
In fact, I’m more curious to know what most of you would do if a bear market was to really happen.
What Investment strategies would you adopt? How would you attempt to make gains and mitigate risk? How are you making sure you're one step ahead?
What I’m doing to prepare for an eventual bear market:
Portfolio allocation
- 50%- 60% of my portfolio would have direct exposure to precious metals and energy (Silver, Gold, Uranium have been good for me in the last 3 years). With all the instability in the Defi world(Wonderland/TIME) precious metals still offer the stability most retail investors, HNI, and institutional capital are looking for in case of a downturn in the markets.
- I would also use 30% to 50% of my cash reserves to dollar cost avg a few hundred bucks a month into market favs (TSLA, AAPL, et al,), a small minority of that into crypto (BTC, Avax, etc.) and gold/silver coins (just in case things go to shit).
Workflows and Resources
- In regards to resources and workflows I put a premium on automation and Intel. Whilst I entertain the debate of retail investor vs machine I prefer to be ruthlessly pragmatic.
This is what I use:
- Trading – Alpaca and composer.trade.
- Market intelligence (Openinsider. com , Whale Wisdom, Fintel, EDGAR, S-1 Fillings, etc.)
- Macro sentiment tracking (I use awario and Feedly. com to track and distill social media mentions for keywords, influencers, regulators, geopolitical info etc.) For a free version of this you can use Google trends and a keyword tracking recipe Zapier.com.
Relocation:
- Relocation might be something most of you wouldn’t probably consider, however having no kids and working in a globally distributed team, etc, I find myself in a position where I could make this a reality.
- I’ve been considering getting a second citizenship in either Montenegro, Georgia (Country), or Jamaica (CIP terms to be announced at some point this year).
That is it ladies and gents.
Your turn. What are you doing to prepare for a bear market? Also any feedback on my tactics would be welcome.
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