1. Our problem is that we don't consider outcome of economic macros realistically and react in a faulty manner to any unexpected risky event.
2. Instead, our asset allocation should always be in a way that any impact of fall in value of one asset does not dent our entire wealth.
3. If we're young with a regular income, we should wait for our investments to bounce back during downturns.
4. If we're debt-free, we can even opt for instruments that are risky in short term but rewarding in long term.
5. As far as micros are concerned, our decision should be based on rationale, not intuition or optimism, by exercising due diligence with sufficient information, to choose our investment tools based on our financial goals, risk appetite and controlled over-optimism, slashing 25-30% off from growth estimates.
2. Instead, our asset allocation should always be in a way that any impact of fall in value of one asset does not dent our entire wealth.
3. If we're young with a regular income, we should wait for our investments to bounce back during downturns.
4. If we're debt-free, we can even opt for instruments that are risky in short term but rewarding in long term.
5. As far as micros are concerned, our decision should be based on rationale, not intuition or optimism, by exercising due diligence with sufficient information, to choose our investment tools based on our financial goals, risk appetite and controlled over-optimism, slashing 25-30% off from growth estimates.