Welcome to the Monday Morning Millionaire Program, the organization that works to exceed your expectations.
This is an interesting time in stock market history. The Dow Jones Industrial Index has hit 60 record highs in 2017. According to the Wall Street Journal, so have a half of the 35 indexes representing the world’s major stock markets. That is the largest number since 2007. And what comes after 2007?
Two thousand and eight! Four of the biggest five market losses in history took place during the last three months of 2008!
Is it different this time?
How can we position our portfolios to protect us against a drawdown (peak to trough market drop)? Join the Monday Morning Millionaire Program and read Protecting Against Market Drawdown.
Investors should have “core and explore” portfolios in proportion to their risk tolerance while conservative investors only need the “core”.
The chart below shows our actual “explore” portfolio performance for the month of November 2017.
The straight-line represents 4 per cent growth, the top line shows our actual explore portfolio, the middle line is the S&P 500 and the bottom blue dashes line shows Toronto Stock Exchange Index. For details, join the Monday Morning Millionaire Program and read Selling Puts in and upcoming issue.
Next week, we will discuss how investors can assess their risk tolerance.