<\/div>\n
Therefore, I do confidently believe in the market\u2019s ability to turn bullish.<\/h4>\n
And thus, I will buy stocks at these low prices. But as a precaution, in case I am wrong, I have laid a plan to protect my wealth in either scenario. The worst-case scenario is that COVID-19 takes such a toll on the market, that investors see no hope, and panic sell. This can, and likely will, lead to an economic meltdown. Under normal times, I would see this highly unlikely based on the danger of COVID-19, but since the underlying economy is far from good, I see it as at least a possibility. We know the US economy is loaded<\/span> with debt. From student debt to auto-debt, private and corporate debt, even governmental debt is at an all-time. This is not only true for USA<\/span><\/span>,<\/span> but also countries like Japan, China, Italy and so on.<\/p>\n<\/div>\n
Protect our\u00a0wealth.<\/h4>\n<\/div>\n
This is my detailed plan to protect my wealth
, first and<\/span> foremost, consider gold as an asset in these times. Gold has been used as <\/span>money way longer than paper money, and paper money has been pegged<\/span> to gold up <\/span>until quite <\/span>recently. Gold<\/span> is often seen<\/span> as an asset that holds its value over time, especially as an hedge<\/span>. Together with gold, I would also\u00a0consider cash. Both are good to have in times of financial disaster. I would see a minimum of 20% of the portfolio in gold\/cash.<\/div>\n<\/div>\n
Divide total investment<\/span><\/h4>\n<\/div>\n
Dividing the total investment is my number two-point to protecting one\u2019s
wealth,<\/span> and being able to buy cheap. The idea is simple; you find a company that has dropped substantially in value, for instance, Disney. Instead of buying the stock right away, you divide the total of shares you want to buy by three. This way you can buy 1\/3 now, 1\/3 at a later date should the price continue to drop. And the last 1\/3 you wait until one of two things happens. Either the crisis is averted<\/span>, and a vaccine is on the market, or the disaster continues and ends up disabling the whole market. Let\u2019s say hypothetically 1929 all over, well imagine how much stock one can get for that last 1\/3. If you diversify it well enough, it will set you up for the next decade. As Baron Rothschild once stated, buy when there\u2019s blood in the streets, even if the blood is your own.<\/div>\n<\/div>\n
Following this approach, you will
be able to <\/span>buy at todays<\/span> prices, average down should the price continue to decline, and have 1\/3 on the sidelines for<\/span> times of full crisis, or to buy should the crisis be averted.<\/div>\n<\/div>\n
As always, thank you for your time, and trade safe.<\/div>\n\n