Importance of staying invested to beat inflation is a psychological battle after GFC 2008. People tend to wait for the next major crisis or at least a correction. This is especially so when we have many headline news or risks and worries.
While the concept is possible in theory, the timing or execution is not easy reason being because of the opportunity costs. Reits yield over the years have climbs down from double digits to 5% range. However, the cumulative capital gains and dividends are of considerable size. (See table)
The Gratification comes in when we go beyond inflation beating to actually profiteering from our investment. And to see our portfolio continuously growing in good years while mute in down. Overall, we just need to see more ups than downs to win the game.
Recession Fear as we are on our 11 years of economic growths since Year 2008. 2020 could be mute or small increase in profitability. What I could do is to continuously apportion my portfolio to more "Fixed returns" by percentage while in absolute number can still be larger in non-fixed investment. This could protect my down side while continuously to have larger growth in portfolio size through re-balancing. That's the strategy.
Cory
2019-1005
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