How to invest in stocks during a Market Crash?

July 25, 2020 Banker on Wheels 7

These are the 10 Rules they have learned
During the March Stock Market Crash pretty much all my family members and some of my friends asked me how to invest in stocks. Given the current market turmoil, there is an increasing appetite for buying stocks. This is what you need to know should another crash materialize (e.g. should the liquidity problems turn into solvency problems in the wider economy later this year)

asset class matrix 2009 2019 gold nasdaq reits S&P dividend aristocrats corporates bonds treasuries TIPS

Investing for Financial Independence? Pay attention to Key 12 Asset class returns

July 17, 2020 Banker on Wheels 1

Asset allocation is typically the most important driver of portfolio performance (up to 90%). You can learn about the wider markets and the fact that being unfamiliar with an asset class is not always an excuse for not including it in your portolio mix – we tend to have a ‘domestic’ and ‘familiar asset class’ bias and that’s why a lot of investors just focus on domestic Equities

return distribution S&p 500 1990 2020 - weekly data

Do I need Bonds in my Portfolio? Understand how Bonds improve the odds of higher returns

June 29, 2020 Banker on Wheels 4

Do you want to buy cheap Equities? Holding Bonds may precisely give you that opportunity through re-balancing. Unless you can put your cash aside for 10+ Years you may want to check how Bond ETFs eg. iShares AGG can increase your returns and reduce risk of high losses.
Here is a simple comparison of 100% S&P 500 Portfolio vs. the most commonly used 60% S&P 500 40% Bonds Portfolio