The Unkle wrote:
Bummbull wrote:
Asset Allocation is the way to go. You're guaranteed to buy low and sell high with asset allocation.
In other words, sell the stocks and funds that have done well and buy those that have done poorly.
Brilliant
Wow. Didn't think I would need to explain the merits of asset allocation as it's the most important aspect of investing. It guarantees you to sell high, buy low. It protects your asset during downturn by having allocation in bonds. So during downturn, you sell your bonds, and buy equity so you can buy equity at cheaper prices. During good times, you sell some of your equity at higher prices and buy bonds.
So, I've almost doubled my portfolio since beginning of this year. Not from March lows, but actually from February high. About $1 million and my age is mid 30s.
Like I've said in the previously, pigs get fed, hogs get slaughtered. I make sure to have plenty of bond allocation now so I'm fine if market goes up, or goes down as long as market trends up in the next 20-30 years.