Many strategies successful in bull market conditions may not be rewarded in bear market conditions.
- Review your holdings, identify laggards and poor performers, consider selling.
- Tighten your stops; sell when the stop is hit.
- Increase your cash levels.
- Increase allocation to high quality bonds
- If you are uncomfortable and worrying about the market, sell aggressive positions down to your sleep at night levels.
- Consider short or 1x inverse instruments.
- Consider an allocation to a precious metals asset class.
This is a short list of actions,review your strategy.
Bear market conditions come to an end. Make a list of opportunities to re-allocate to when the bear hibernates again.
If you are still unsure about your asset allocation strategy in light of the information presented you should call RS Asset Management, probably now, while you are thinking about it, for a free one-hour consultation.
We can talk about your situation in detail, its free and confidential. Call 719-219-8444.
While assumptions are based on historical index data, past performance is no guarantee of future results. Indexes are unmanaged and cannot be invested into directly. Assumed rates of return are hypothetical which do not reflect the deduction of fees and charges inherent to investing in securities are not representative of any specific securities. Your results will vary.
Securities offered through LPL Financial, Member FINRA/SIPC Investment advice offered through RS Asset Management, LLC, a registered investment advisor and separate entity from LPL Financial. The information if contained in an email message is being transmitted to and is intended for the use of only the individual(s) to whom it is addressed. If the reader of this message is not the intended recipient, you are hereby advised that any dissemination, distribution or copying of this message is strictly prohibited. If you have received this message in error, please immediately delete.
Copyright 2016 – LPL Financial. All Rights Reserved.