HOW TO BUILD A CRISIS PORTFOLIO? SIMPLE IDEAS

Img Source: Mary Day Trader Channel on Youtube.

Life is a constant problem: when one does not have money, it becomes essential to get into the habit of saving it. This is the only way that allows, with a little luck and diligence, to abandon the condition of a slave.

It is possible that one is lucky and improves his situation, but then new problems will appear. What do I do with my money? -It is a common question. There are times when the capital saved is not used, and there are others that even the appearance of a crisis can even make you lose.

Problems never go away.

That is why portfolios were invented, ways to diversify the risk of our investments. I must warn that if you want to prosper through your money, perhaps diversifying is not the best strategy ... but if you want to, it is to protect your money, it is a card that you must play.

In this coming crisis, it is best to be off the stock market for a while: it seems that we have entered a bear market, and these usually last at least 18 months.

Of course, the first stock market crash, fueled by the pandemic, has happened surprisingly fast, so we may see surprises.

A faster fall than thought is possible.

Discarded the bag, it is time to go to the protection of our heritage.If you are in debt and you can get rid of that rope, do not hesitate, pay off that debt; it is good to have a roof when the storm arrives.

If you already have a roof over your head, and still have money left over, I recommend diversifying, part in cash, and part in safe haven assets such as gold, silver and Bitcoin.

Example: suppose you have a paid home and, for example, 30,000 euros saved. You can leave about 10,000 in cash and then diversify the other 20,000 into 3 other assets. Thus, you are left with liquidity for expenses that may arise, as well as a Possible bargain appeared after the stock market crash.

A perfect plan!

You only have to visualize your position when the crisis passes.

Think: if you have your 20,000 euros in safe-haven assets, in the worst case you will keep them, while you are likely to get a juicy appreciation.

Those 20,000 euros could be converted into a purchasing power of 30,000 or 40,000.

And as for cash, we are likely to see a stock correction of between 60-90%. Perfect time to buy when you see blood on the streets! When the bag reaches critical levels, I suggest contacting a broker and start buying stocks.

The dollar cost average technique will help you.

So, for example, if you start your purchase when the stock has fallen 60% and continues to fall, you will buy closer to the bottom, waiting for a strong recovery. I suggest you choose companies with a dividend of more than 4%, as well As your shares go up, you will see how every year you get an extra return.

In this way, when this crisis will pass, you will be able to see yourself in an economic way far superior to the one you have now. Greetings and good luck.