Can’t Beat Them, Join Them?

in #leo3 years ago

Join Them?.png

The time has come for me to adjust some things in my investment portfolios. As the saying goes, I cannot expect different outcomes by doing the same things! Therefore, I have thought of joining the heard since I cannot beat them. It may be ill-advised given my awful performance from a timing perspective, but I will diversify in order to mitigate risk over the short term in addition to taking a scaled approached in entering the positions.

Interestingly, my broker currently recommends have 89% in equity which is far from where I am. However, I have continued to enter into the market slowly which have put me closer to a 50/50 approach I intend to take over time. The importance of scaling into a position is to be able to adapt to changing market conditions which we have seen as of late. It continues to seem like the markets will remain sustainable given how much monetary and fiscal stimulus continues to be available to the economies which are expected to trickle to companies.

The question of the future will likely be when this will stop and how the market will look from there forward. There has already been talk of rotating between sectors as changes in expectation come true. However, there is still a lot of uncertainty around the future considering the many impacts of the new economy to valuations and markets. In the end, the debt will need to be paid but who will pay it?

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