Unless you plan to rely on luck, your portfolio's long-term success will depend on periodically reviewing it. Maybe economic conditions have changed the prospects for a particular investment or an entire asset class. Also, your circumstances change over time, and your asset allocation will need to reflect those changes. For example, as you get closer to retirement, you might decide to increase your allocation to less volatile investments, or those that can provide a steady stream of income.
Another reason for periodic portfolio review: your various investments will likely appreciate at different rates, which will alter your asset allocation without any action on your part. For example, if you initially decided on an 80 percent to 20 percent mix of stock investments to bond investments, you might find that after several years the total value of your portfolio has become divided 88 percent to 12 percent (conversely, if stocks haven't done well, you might have a 70-30 ratio of stocks to bonds in this hypothetical example). You need to review your portfolio periodically to see if you need to return to your original allocation.
To rebalance your portfolio, you would buy more of the asset class that's lower than desired, possibly using some of the proceeds of the asset class that is now larger than you intended. Or you could retain your existing allocation but shift future investments into an asset class that you want to build up over time. But if you don't review your holdings periodically, you won't know whether a change is needed. Many people choose a specific date each year to do an annual review. #traders#trading#bitcoin#trader#forex#money#business#invest#cryptocurrency#investment#daytrader#trade#motivation#daytrading#forextrader#ethereum#wallstreet#traderlifestyle#stocks#fx#finance#crypto#stockmarket#btc#success#forexlifestyle#makemoney#cryptotrading#investor#bhfyp
Bitcoin broke 4K, we may see a steady climb from here but the reversal needs to be confirmed. We have seen moves like this several times so I’m not feeling any fear of missing out currently.. Will take up some small positions here and there for the time being.. best of luck everyone, don’t forget to hodl😏 #bitcoin#litecoin#stockmarket
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3 4221 minutes ago
Money Myth: Cash is King!🙅♂️🙅♂️🙅♂️ #ControversialTopic for some peeps
Whats your thoughts on cash? How much do you think you should have for safe keeping for your rainy day fund? ••••••••••••••••••••••••••••••••••••••••••••••••••••••••••
If your cash is sitting in a bank its DEAD money. Warren Buffet once said “its better to have a good asset than a bunch of cash”. Take a moment to think about it, cash is a tool and doesn’t do anything for us if its not being used. So why store all your money in a bank account. Lets be smarter with our money in 2019. Put your money to work and invest it into assets to generate more cash. Assets appreciating overtime will produce financial freedom waaaayyyyy before Dead cash will (Investing>Saving). When talking assets we’re talking things that provide you cash flow and generate you more money. Stocks, Bonds, Business, Real Estate, Intellectual Property are just a few of the big ones! Prioritize assets over cash and you will reap the benefits💰💡
🚨Keep in mind though having an Emergency Fund is key for financial stability, but their should be a limit. Once your Emergency Fund is to an amount your okay with often times 3months worth of living expenses then at that point ALL extra cash you have per month after maintaining your budgeted lifestyle should be dumped into assets. Remember the 50/30/20 rule on budgetingI discussed a few post back!
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We place A LOT of value on analyst’s forecasts, which are just that—forecasts. Even the highly probable cases are, much of the time, wrong!😱
But that’s the game! You make every effort to study out a company with the available resources, then you MANAGE YOUR RISK EXPOSURE just in case you (and Wall Street) end up being WRONG!
A couple days I posted a little bit more about some steps to think about when managing your risk. While that’s hardly an extensive list, it’s a good place to start.😉
What do you find valuable when looking through company forecasts?
Mainstream media outlets are beginning to build hype around a possible bull market incoming for BTC. Only time will tell, but there is still a good chance we will see the likes of $2,000 - $1,800. What is your prediction for BTC price Dec. 31, 2019? Share in the comments
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34 10613 days ago
Some chart patterns to look for when trading 💰
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Here’s another reason to look forward to the weekend❗️Buffett releases his highly-anticipated Annual Shareholder letter tomorrow (Saturday, Feb 23, 2019)❗️
You can find it by going directly to Berkshire Hathaway Inc website and there is a section for all of his annual shareholder letters dating back to 1977❗️
If you want an interesting read this weekend, I highly suggest these❗️
Content by @investorsgrow