Capital Preservation is a guiding principle of Rules Based Investing. Fully participating in the last 2 Bear markets would have yielded losses (on average) of 49% and 54%. OUCH.
These defensive strategies help top investors deal with market uncertainty
Link: These defensive strategies help top investors deal with market uncertainty
Quote “Generally speaking, HNW individuals have a sense of humility in the face of the future: most have learned through experience that sometimes, the unlikely or unexpected happens. They prefer to be prepared for it (even if there’s a cost to that preparation) rather than relying on hope and crossed fingers.”
Extract:
- Holding cash
- Diversification
- Stop loss orders
- Options
- Alternative assets
