The Slow Grind Contiues
I mentioned somewhere, instead of around 30-35 stocks in portfolio, I would have been better off having just my own top 10…and would have probably hit the Home run if had just my top 3…
This is not just for the drawdown management because after all for long term investors, drawdown is just on papers…this is more so on portfolio management ease & strategy to re-adjust, if needed, or to add more when opportunities arise.
The FOMO of bull market and also the reminiscence of past sector heroes during momentum (add to it the narratives of various pundits and also self derived convictions) – creates a strong urge to diversify & have some more sectors in the portfolio, some more names…
And this very urge creates the perfect recipe of portfolio mismanagement during an ensuing Mild bear/Stagnant market.…
I can only imagine the mayhem it can create during a cut-throat Bear market.
This brings an immense need to have in place a portfolio management strategy in case current mild bear turns cut-throat.
As mentioned in beginning, drawdown management is not the focus here. Focus is to have a sound portfolio management to ensure ease of holding/management, make use of Bears, come out better from it and also ensure this continuity.
At present, I see myself very ill prepared for any cut-throat Bear and neither do I see this situation improving with the “flab” names/sectors continuing to do worse.
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