How can you construct a financial investment strategy to protect yourself during these turbulent times…yet still get the growth you need to ensure a solid financial future and comfortable retirement?
By building an investing safety net that gives you the gains (though more modest than those of past years) and protection against the downside. When turbulence strikes again — and it will! — you won’t re-live the financial nightmares of recent years when portfolios and 401Ks were devastated.
Jim Glassman provides the specifics you need for shrewd asset allocation:
- Reduce stock ownership. For those stocks you do own, ensure they meet the right criteria.
- Make a substantial investment in bonds especially US Treasury TIPs and corporate bonds.
- Hedge against decline by owning a bear fund that shorts the US economy.
- Own funds based on other currencies to protect yourself against the potential decline of the U.S. dollar.
- And consider derivatives. Yes, derivatives!
Specific stock, bond and fund recommendations provide the starter ideas for properly balancing a portfolio. And the five principles and 18 rules of Glassman’s “new rule book” help keep the “animal spirits” in check when fads and news flashes tempt you to make rash investing decisions you’ll soon regret.