Has the stock market crash eaten up more than 40% of your portfolio? Would you like to minimize the effects of such disasters in the coming year? Are you confused about what investment strategy to follow, where to invest in 2009, how to build your portfolio etc. In this post I will outline one simple effective investment strategy which will help you make the most of your stock market investments.
If the economy seems to be improving - then let your portfolio have more taste of high growth stocks.
So far so good. The main question is: how to judge if the economy is going to do well or not? there are so many indicators and numbers to watch. Unemployment, Housing data, industrial production and plus economic condition of other countries which are trading partners. Is there a simple indicator for judging where our economy is going? Hooray!! there is....
The above simple idea combined with basic investing disciplines like respecting stop losses, booking profits regularly, not ignoring fundamentals, not blindly believing stock tips will make your portfolio perform much better than before.
I wish you all the best and happy investing for the coming new year!
This post was selected for inclusion in Carnival of Personal Finance #185