My experience in winnings and losses over more than a decade has resulted in me spending more time taking a step back reviewing and analyzing on how improvements can be made.
The conclusion that I arrived is that a more structural approach to investments is necessary to reduce losses and increase gains.
Risk Management Framework & Multi-Asset Strategy(Asset Allocation)
A proper framework is required to protect and minimize portfolio risk and at the same time to extract maximum returns.
A deep understanding of Bull Bear Market Cycles can assist in Market Timing.
Reason on Focusing on Asset Allocation and Multi-Asset Strategy
A Black Swan is an
event or occurrence that is unexpected and extremely difficult to predict.
Market normally crashes when a Black Swan event occurred. Global Recession
takes place after such events occur.
Example of Events that
maybe considered Black Swan are Covid19, US China Trade War 2018-2019, Oil Bubble
2014-2015, Lehman Crisis 2008-2009, Europe Debt Crisis 2011 etc.
Each time market
crashes are due to different reasons. Hence relying alone and solely on past
experience can be risky.
Hence my view is that Asset Allocation and Multi Asset Strategy is the way forward.
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