Monday, May 16, 2022

Great chance to add wealth - Bear of 2022

So the bear is real and it is upon us. Assets of all classes have pulled back significantly. 

My original plan of reaching 350k seem impossible right now, but definitely this will give me chance to add good assets at cheap valuations. I did felt that from 2021 onwards prices seemed very elevated and due to high inflation, investors were left with no alternatives (TINA)

The following are my presumptions for the bear market:

  • traditionally style bear (not like the 6-month hi-bye covid bear)
  • historically speaking whenever fed increase rates risk on assets tend to dip
  • US cant possibly ignore its own debt (or could it?), hence the higher interest has a limit
  • recession would come since not everyone recovered fully from Covid-19 impact
  • supply chain issues persists. Fed can only control demand not supply by its interest rates 
my action thus will be 
  • deploy my cash all the away to 0% , over the expected duration of 12 to 18 months at least
  • 30% BTC , 40% dividend stocks (cashflow high yield entry), 30% stocks (SMH/MOAT/TSLA) 
  • reduce expenses for investments - target 2k expense per month
Wish me luck for this year!! 

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