Currently, we are in a crisis. And due to that, one question drives me: What will be the development of my investments in the stock market? I would like to discuss this with you. In complex situations like this, I utilize a Last Hour Decision-Making Meditation, which is a part of the Decision-Making Meditations.
In this video, you find a detailed explanation of why the premortem technique works so well!
Today's Last Hour Decision-Making Meditation utilized death as your consultant! That gives you access to your subconscious mind and emotions, which make better decisions in complex situations. It will lead your imagination into the last hour of your life. If this is emotional to challenging for you, just imagine your 100th birthday instead. So, today I did the fourth Decision-Making Meditation about the question:
“What should I do with my investments in the stock market?”
This Last Hour Decision-Making Meditation goes like that:
You are walking in the countryside. The birds are singing, the sun is shining and you enjoy the warmth and energy it gives you. In the distance, you see a little, white house and you are heading towards the small building, which is a chapel. You know this is your last journey, but you are grateful for the wonderful life you lived. You enter the building and in its center is a bed, and you lay down on it. As your view goes around, you see a clock, which indicates 11 p.m.
Then your loved ones and friends come and enter the chapel. With gratitude you appreciate the part of your journey, you had together with them. You are taking a deep look in their eyes, shaking their hands, giving them a warm hug, and maybe a sensual kiss. You feel a deep love and fulfillment remembering the good times and challenges you experienced with them. And you know, it is time to say goodbye to each of them. They are leaving the chapel and it gets quiet around and inside you. You take a look at the clock again, and meanwhile, it shows 5 minutes to midnight. Now it is time to think about the decision you wished to have taken during the current crisis. Now, you got 5 minutes until the curtain falls ...
At this point, I had no doubt, that I should have remained invested, and I felt certain, that the upward trend will start soon. So, to be able to take advantage of it, I will continue with the re-balancing strategy. Further, I want to switch the ETFs with the biggest losses to other providers. For example, selling the NASDAQ 100 Amundi or Comstage ETFs and reinvest in a NASDAQ 100 ETF from Invesco or iShares.
So far, I used to be invested in each of my assets with the same amount. I will analyze the risk of each of them, and change their allocation in my portfolio. So, each of them contributes to almost the same risk. The risks I roughly estimated are:
- Gold 5
- Swiss Market Index 10
- S&P500 15
- China 20
- NASDAQ 30
- Berkshire Haddaway 40
So that means I should limit my investments according to the equation
100 minus risk index
—————————————- = maximum %age of your assets
number of positions
to a maximum of
- Gold 19%
- Swiss Market Index 18%
- S&P500 17%
- China 16%
- NASDAQ 14%
- Berkshire Haddaway This is an individual stock, so the maximum should be only 5%!
So due to the fact, that the sum of the percentage only adds up to 75%. I should have 25% of my assets to invest in something else. This could split between individual stocks, with a maximum of 5% of each of my assets. For example artificial intelligence, Virgin Galactic, and 2 other ones.
A result is always a consequence of an action. That means one needs an action plan. The action plan looks like that:
- Calculate the maximum amount of each ETF
To make the calculation easy, I decided to limit
- Gold to 20%
and the other ETFs
- Swiss Market Index
to 12.5% each.
- Gold to 20%
- Check if I am over-invested or under-invested
- Use my re-balancing strategy to slowly but continuously get to an equal risk distribution.
- Invest almost 100%, because I assume, we are almost at the bottom and the only way is up ... earlier or later, anyway!
- find and invest in up to 3 other stocks and invest up to 5% in each of them.
- And finally, take action. Because the best plan is not even worth the paper it is written on, in case it does not get executed!
So, go ahead and think for yourself and share your thought in the mastermind or the comments below. These are my thoughts. They are base on my investment situation and best guess what is about to happen. It just reflects what my subconscious mind came up with, during the last hour decision-making-meditation. Your risk tolerance and investment situation are different and due to that, your strategy should and will be a different one. Which means you need to find out what resonates with you. The last of the decision-making meditations will help you to do so.
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Vital and happy regards