Asked by Anonymous
Updated on 24 Apr 2019
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...
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.