How to protect myself from ruin?

[aparoid89]

I am a buy and hold investor with about 80 percent of my money in equities and the rest is in the bank. Even though I hold a diversified portfolio which should defend myself from declines in an individual sector, nothing would protect me in the event of another great depression type event where 70 percent of the stock market gets wiped off which would pretty much ruin me.

I guess I could use stop losses but that would take a lot of effort to constantly adjust my trailing stop. I was hoping for something more automated. Would holding 50% equity and 50% bonds be a good solution? The only problem with that is the low interest rates on government bonds that are currently around 1% which is not very attractive.

 

[tomorton]

You cannot be serious about any of this, surely?

 

[dealer911]

I am a buy and hold investor with about 80 percent of my money in equities and the rest is in the bank. Even though I hold a diversified portfolio which should defend myself from declines in an individual sector, nothing would protect me in the event of another great depression type event where 70 percent of the stock market gets wiped off which would pretty much ruin me.

I guess I could use stop losses but that would take a lot of effort to constantly adjust my trailing stop. I was hoping for something more automated. Would holding 50% equity and 50% bonds be a good solution? The only problem with that is the low interest rates on government bonds that are currently around 1% which is not very attractive.

get out of the market right now! - go to 100% cash.. find a decent savings account and stash your money in there.. do not under any circumstances consider getting involved in the markets again.

 

[Pat494]

If you really think the financial situation is going to get a lot worse then buy gold.

 

[aparoid89]

You cannot be serious about any of this, surely?

Why not?

I don't see what's wrong with trying to protect myself, which part do you have a problem with? Not using a stop loss? I'm not using any sort of leverage and I own stock with low volatility.

 

[james1989]

I am a buy and hold investor with about 80 percent of my money in equities and the rest is in the bank. Even though I hold a diversified portfolio which should defend myself from declines in an individual sector, nothing would protect me in the event of another great depression type event where 70 percent of the stock market gets wiped off which would pretty much ruin me.

I guess I could use stop losses but that would take a lot of effort to constantly adjust my trailing stop. I was hoping for something more automated. Would holding 50% equity and 50% bonds be a good solution? The only problem with that is the low interest rates on government bonds that are currently around 1% which is not very attractive.

Firstly, if you're an investor, do not set stop losses.

Secondly, bonds in my eyes are one of riskiest investments right now.

Thirdly, if you want to post your portfolio holdings, I can analyse them and tell you what a conservative investor shouldn't be holding. Buying right now would be dangerous as nothing strikes me as cheap with a margin of safety, if you do decide to buy, wait for the next wave of pessimism.

Regards

 

[turboonostrilvision]

I am not a big investor and do not hold any shares myself but I will put money in sipp with hargreaves and lansdown ,choose few of the funds they offer, you can hold your shares within an isa or sipp with them, another thing I will do is buy carbon credits and another set auto strategy with paid subscription to one of very experienced forex traders, this way I will stay safe , have my eggs in few baskets and become very rich very quick. Also will buy some well know companies /shares with dividents, glaxosmithkline, bp, tesco, tobacco companies.

Good luck.

 

[Patricia12]

You should not stay in trading market now, if you are continuing ruin. Open a savings account and deposit rest money here.

 

[turboonostrilvision]

You should not stay in trading market now, if you are continuing ruin. Open a savings account and deposit rest money here.

Very poor interest from saving accounts, better alternative investments.

 

[tomorton]

Better 0% than 0 capital.

 

[james1989]

I have just been valuing some eminent US companies and the valuations are coming in extremely low, we're looking at the old lows of 2009, the banking sphere in particular. For example, I wouldn't touch Wells Fargo this year until we get to the 15USD area.

Now i'm not saying that these valuations will be reached, but most years suffer a pullback in the market and my valuations are usually bottom end where the market reaches, the market could however head on up and this year could be a rare year where value opportunities are few and far between.

I believe we are modestly overvalued at the moment with prospects not at all rosy, particularly concerning US debt (Russian and Chinese pact to dump the dollar) and China economically. I said last year to friends that April would be a tell tale month in respects to the aforementioned.

A sign of things to come?

My advice, sit on the sidelines until we get a pullback.

 

[Pat494]

Buy arable farm land
Food and water are going to be big big factors in the decades to come.

The do-gooders are curing every known disease and spreading peace everywhere, so the population is set to rise exponentially.

 

[NVP]

I am a buy and hold investor with about 80 percent of my money in equities and the rest is in the bank. Even though I hold a diversified portfolio which should defend myself from declines in an individual sector, nothing would protect me in the event of another great depression type event where 70 percent of the stock market gets wiped off which would pretty much ruin me.

I guess I could use stop losses but that would take a lot of effort to constantly adjust my trailing stop. I was hoping for something more automated. Would holding 50% equity and 50% bonds be a good solution? The only problem with that is the low interest rates on government bonds that are currently around 1% which is not very attractive.

Give it all to me to look after...I also run the Nigerian Lottery if you are interested

more seriously - a famous trader once said

if you dont know what you are doing ......dont trade !
(or invest):smart:

step back and get a robust strategy in place before you risk your money any more

N

 

[mat belton]

Hi Aparoid89,

80% long equities, nice start to the year !! ... i would sell 50% of my holdings, switch the stocks left into high yielding stocks... you could always short an Index through a spread better.

 

[scose-no-doubt]

The do-gooders are curing every known disease and spreading peace everywhere, so the population is set to rise exponentially.

BBC News - Indian TB cases 'can't be cured'

This is only the beginning imo. If a few billion need wiping off the planet this is the way to go about it.

 

[angelnish]

If you think you are losing continuously and will be bankrupt stop here itself. Dont be stupid and save the money you have.

 

[hi1234567]

Invest with a strategy. If you're so afraid of a depression then get out when there's high volatility, then go back in when volatility drops?

 

[fitzgeral]

Yes i already opened a saving account and save there if you are ruining then you should do same as i done so if anybody are continuing ruining then you should do same..