Do you think it is sound to grab all risk-adverse assets during bull market and riskier assets like equities and REITs during bear market? - Seedly
 

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Asked by Anonymous

Asked on 19 Apr 2019

Do you think it is sound to grab all risk-adverse assets during bull market and riskier assets like equities and REITs during bear market?

During a Bull Market (like now), u grab all the risk-adverse assets like Govt. Bonds/Gold/Yen/Franc since their price is low as everyone is focus on riskier assets like Equities/REITS. When a Bear Market comes around, the price of the previous category all shoots up and that when u take profit. In turn u buy up all those latter asset as equity will be at all time low. Hold them til the nxt Bull Market then u take profit again. Then repeat...

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Nicholas Tan Yi Da
Nicholas Tan Yi Da
Level 4. Prodigy
Answered on 24 Apr 2019

Yeah you are definitely correct in a sense ah, i mean thats in theory and seems at first glance to be true. It easy to relate economic downturn to lower prices for etfs/equities, but u have to understand may not necessarily happen too. Not sure if u study economics( i studied in jc ah), like everytime there must be this term 'ceteris paribus', means certain factors must be there for some stuff to happen. So not necessarily bearish/downturn then buy. For me maybe i just monitor the prices, like at the historical chart before i set a price in comfortable to buy with.

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