@LarryWink I will answer as best as I can.
Many followers of Momentum investing go with either cash or gold during deep drawdowns. I do not like to go to cash and hence, I had not proposed that.
Catching the bear market early – one of the early indicators is when you find the fast moving average goes below the slow moving average. Example: 200 DMA (daily moving average) is crossing the 50 DMA from bottom. Here, we can use the smallcap (or microcap) index for this measure. We re-enter when 50DMA crosses 200 DMA from bottom. This could mean long duration of not participating in the market.
Rebalance: There are only two choices in a bear market. Go to cash (/gold) or choose the strongest of the stocks in the index. If you are ready to encash, then the 1st option is absolutely fine.
If you want to remain in the market, then rebalance with the strongest stocks. You might lose money, but it will less than what it would be if had remained with weaker stocks.
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