Simply put, it's the concentration of money in companies whose failures would have a considerable global impact. While the global stock market is relatively uncertain, it is better at filtering out companies that are undervalued at this time. When the market is relatively sluggish, there is no need to rush into the market in a crisis. Select a few companies carefully and observe whether the revenue of these companies and the income of the US stock market have increased, including operating cash flow, liabilities, and income data.
First understand whether the current stock price is overvalued or undervalued, and make an assessment before investing. The global stock market has entered a bear market, giving you 4 suggestions for capital allocation In the face of the recent market, if whatsapp list you are an investor who is more prone to anxiety like Yawen, you can first increase the cash on hand to a standard that can maintain a worry-free life without work for one to a year and a half, so that even in the global market In a volatile situation, cash is also sufficient to withstand the risk that the market will return to the level for a while.
Furthermore, when the target company is thoroughly researched, one should maintain confidence in the market and wait for the overall situation. The third and most important point is that because the asset and financial allocation are in a sound state, as long as the market stabilizes, there is no need to worry. Finally, strictly abide by investment discipline, do not put all funds in one company, but diversify risks and allocate them to different companies. Asset allocation should be judged based on age, financial goals and income. Generally, conservative investors who are prone to anxiety, I would recommend investing 50% or 60% of defensive assets.