Say, I want to buy few main Chinese stocks e.g. BABA, TME. I understand that the risk of buying those stocks is that I am not the shareholder of those companies, rather of some VIE. But say, I buy ETF e.g. iShares China Large Cap UCITS ETF or iShares MSCI China UCITS ETF. Is the risk due to Chinese government’s action same with buying ETFs? Or, say I buy iShares Core MSCI Emerging Markets IMI UCITS ETF. How is the risk to the Chinese portion of the ETF? If I don’t want the risk due to Chinese government’s action, should I stay away from the ETFs with Chinese holdings?
I’ve seen several post worries about a market crash- mostly new investors who are worried they bought the top. Here is one way to play a crash for whom it concerns
1 almost all the time people are predicting the next crash
2 know what your investing in~preferably a company you know and use that is steadily showing an increase in cash flow ~ a solid company then how the market moves shouldn’t matter. The price of the stock shouldn’t even matter. You own a part of a great company.
3 use the power of DCA ( dollar cost averaging) with this strategy you buy consistently every week – month – or day. This will minimize the effect of volatility on your portfolio.
4 DIVIDENDS. often good established companies will pay you a portion of their profits. By reinvesting these you can grow your share count. Using ETFs like SCHD or JEPI create cash flow in your portfolio quarterly and monthly. When The market begins to fall you are all ready accumulating more shares at discount prices. These newly acquired shares will also pay you dividends creating a snowball effect.
5 if you can add more than your dca purchases then save it as a cash or bond position In your portfolio. This will allow you to go on a spending spree when the market crashes to buy more of your shares you picked out in (see “2”).
6 recent US history 1973+ has shown that during market turn downs the fed will try and create an artificial floor under the market. You can benefit from this buy purchasing gold and silver or mining companies. This always works as an inflation play. Ray Dalio suggest to keep ~7% in precious metals. Another inflation play would be commodities such as oil or oil companies or lumber etc….
7 I do not suggest buying or using these. OPTIONS. You can sell calls or buy puts when expecting crashes. If I had to chose one I would sell COVERED calls and re buy them when the stock drops for a lower premium and reinvest the difference. With put options I think the risk is greater. I won’t go into detail here on what options are.
Thanks for reading and as always happy investing let’s meet our goals.
JPM q3 guide to the markets
Hey all, this is a short post because it’s mostly pictures – but because of the influx of new people I figured it would be nice to post the JPM guide to markets. This is mostly a huge collection of charts and graphs illustrating trends and changes in market dynamics such as growth vs value, valuation levels, sector rotation, style performance, etc.
They release these quarterly, along with annual guides to retirement and long term market expectations.
FYI you can sign up for JPM to send this straight to your inbox on the website as well.