Investments allocation in Global slowdown
Unless there is a big international crisis like North Korea, the profit booking session have seen, expected to more correction level, and also noticed the volatility in the world market scenario. So, in this condition, our portfolio should be properly allocated, protection against risk, and timely revise it.
Stay invested: This is not a big issue to book the folio or reshuffle the folio, but investor should be aware of their allocation, and stay invested in equity part to analyzing the individual equity by their weight, if the equity is overbought zone and also have potential to gain more, So, investor should have to put that under his observation or he can hedge his investments also.
Moved out from unperformed equity: If an investor observed some of his equity holding part are not performing well and still be in undervaluation, Then exit from this type of investments and that can be replaced by potential equity.
Proper allocation of Bond: In this condition, Bonds rate and potential to gain in interest rate may lure to invest in major portion, but that can be an illusion. If the crisis will reshuffle, an investor can lose earning potential. Instead to betting on interest rate returns, folio should be constructed with reward ratio. Instead of that, an investor can manage cash holding for interest gain, that can also meet the immediate expenditure of the investor.
Gold investments: In current situation gold rate were pooled back and shown the potential to gain. So, some part of investment with appetite risk should be invested in gold or gold related instruments.
So, the crisis and profit booking sessions bring an opportunity to revise the folio with best revise point, that can practice from time to time.