I find this period of financial world is in chaos, very much like the early stage of three kingdom in china history. There are lots of opportunity and trap along the way. In order to succeed in this period, a sound and solid strategy is needed.
My strategy is simple. Find undervalue stock with clear growth path, low debt, sufficient cash; or very good company with fair value but not catching much market attention. Find a few of them with different business nature so to diversify the portfolio. Plan ahead sufficient available capital to invest for upcoming financial crisis.
Limiting to the undervalue quality or good stock, when financial crisis come, the stock which drop the most will offer opportunity to buy cheap, the stock which do not drop much means it has the strength and will gain attention to pick up faster when the market recover.
Because of that, it should be wise to invest equally to every stock when financial crisis arrive.
That’s a brilliant strategy! You are putting your money in a safe zone that way. You should definitely plan ahead when you are making an investment, particularly in an economy plagued by a financial crisis. Be smart and be updated with current market trends.
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