Risk Management Strategies

Unlike the last 50 golden years of global growth, it's a time of growing caution with an undeniably deteriorating global macro economic conditions saddled with record debt at all levels with unfavorable aging demographics in the largest economies as discussed in Part 1.  But what to do about it all.  With so many headwinds, there's 120%  possibility I'll lose money somewhere.  The main thing I did know before I started was that I want to limit the downside and make sure the asset can be held for decades to recovery with a dividend so I can drip and compound my way out of losses.

However risk management takes many forms far beyond asset allocation/selection.  Here's my current general risk strategies for the upcoming recessionary cycle. Each strategy analysis was getting so unwieldy so this is a summary page and  I've made separate posts or am in the process of doing so.
  1. Invest in Knowledge
  2. Diversifying Diversification- Diversify across time, risks, asset classes, sectors, capitalizations, investment strategies, geographies, tax handling, information/knowledge diet
  3. Dividends and Fixed Income- Get paid decently for holding on even when asset price declines
  4. Hold Assets that have Real World Value
    • REITS & Utes & Infrastructure
  5. Hold mostly Quality
  6. Have Cash Ready with a Shopping List with a Loss Strategy To Take Advantage of Coming Sales
  7. Know your Limits and Investing Weaknesses
  8. Probabilistic Thinking and Acting
  9. Devote small portion for High Risk Outsized Growth
  10. Invest in Life- health, family, friends & humor.
I don't hold short positions.

5 comments:

  1. startupzcultureJuly 28, 2020 at 3:12 AM

    Hi there, I read your blogs on a regular basis. Your humoristic style is witty, keep it up! Thank You for Providing Such a Unique and valuable information, If you are looking for the best What Is Mutual Fund Investment,then visit Startupz Culture. I enjoyed this blog post.

    ReplyDelete
  2. rootincDecember 17, 2020 at 2:39 AM

    Really glad to say, your post is very interesting to read. I never stop myself to say anything about it. You are doing a great job. Thank you for sharing this blog here. Organizational change management strategies

    ReplyDelete
  3. HalleboseMarch 27, 2022 at 4:25 PM

    Hold quality

    ReplyDelete
  4. purplewindowMarch 29, 2022 at 10:57 AM

    It is truly a well-researched content and excellent wording. I got so engaged in this material that I couldn’t wait to read. Read more info about Reliable Enterprise Risk Management Software. I am impressed with your work and skill. Thanks.

    ReplyDelete
  5. Harry UnwarApril 2, 2022 at 9:33 AM

    Like 8 a lot

    ReplyDelete

Subscribe to: Posts (Atom)