🐻 It's officially blood bath everywhere. How are you preserving your capital's real value?

[pavinjoseph]

I have implemented this strategy for my parents’ portfolio:

SWP Magic - Education Purpose

@TradeB2B For even slightly savvy investors, it would be better to manage the multiple assets separately with fixed ratios rebalanced at fixed intervals, say: 15% debt 25% gold 30% each in large and midcaps This way, the investor wouldn’t have to redeem a combined unit taking unnecessary losses when for example equities are down. They could just redeem their gold which has nil/negative correlation to equities. …

They’re still sitting on massive gains from gold, so the current dip is not an issue.
My investment portfolio OTOH is all in on equities, so it’s hit bad, but these are paper losses and I have no plans to book it.

Given a long enough timeframe Indian equities will outperform even gold, that is my long term view and hasn’t changed. I’m optimizing for returns.
In the short term, I have uncorrelated trading returns and some debt to tide me over!

Still it hurts that even though trading returns were stellar this year I have lost paper money to equity correction, inflation, and rupee depreciation. Just the latter two comes out to about 10% for last 12 months which is crazy! Even if long term equity gives 12% CAGR, my gains would be only a measly 2%!