Recapturing Portfolio Loss Howdy folks,
Look around you and see what's working. Don't fall for the head feint to the airlines, hotels, casinos, tourism, Trump Resorts, etc. Sounds like they might get their bailout but they can't get 'demand' from the gov't. Demand for these industries will be depressed for years. Unless you're very, very nimble and are FOD, I'd focus on what will work and have demand going forward.
Video conferencing and anything that replaces F2F with Virtual. Online shopping? Who does it? Who delivers? Schooling? All virtual.
I'm adding to Asia and have been scaling in since just before this broke [yeah, bad timing but I didn't have to wait long to become whole]. For funds, I like the House of Matthews and am riding MPACX, MATFX, MCHFX. Needless to say, I'm all over the pm's with SLV, SILJ, GDXJ, CEF, and some junior miners.
Most of my allocation is overseas at this point - say 85-90%. It's in both bonds and equities, mostly the former.
Good luck,
peace, and flatten the curve,
rono
Recapturing Portfolio Loss Experience tell me in order to fully recover the loss that would be time, recovery time that is. During 2008 drawdown, S&P500 index took over 4 years to full recovery the loss from peak to trough. Depending on your asset allocation, it may be shorter (hopefully not longer).
At presence the sell-off is severe, i.e. the rate of decline is even steeper than 2008. There are days when the supposedly opposite asset classes such as bond vs. equity move in the same direction, which indicates panic selling to cash. So jumping to one ship on fire to another is not a viable option to recover the loss.
If you follow Charles Bolin article on MFO, he is near retirement and his portfolio is constructed very conservatively with 20% equity. He should be doing quite well now considering S&P 500 index is down over 30% as of 3/20/2020.