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Dealing with a possible stockmarket crash
23 Aug 2021 (789 views)  

Many people expect a stock market crash.

Indeed, the stockmarket has been weak for the past week after the US Fed suggested that their monetary policy may change.

I hope that the crash does not happen. If it does, I will handle it as follows:

1. About 60% of my portfolio are in good value stocks with low PE ratios and high dividend yield. I will ignore the current prices and keep the stocks for a dividend yield of over 4%, based on my cost.

2. I hold about 20% in growth stocks (except for Tesla) which have already fallen 50% from its peak. I will wait for their recovery.

3. In the case of Tesla, I am optimistic about its prospects over the next two years as their two new gigafactories will double their production and they still have high demand for their vehicles.

4. As I have invested entirely with cash, I can hold on to the stocks for as long as it is needed for their recovery.

Tan Kin Lian


Dealing with a possible stockmarket crash
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Many people expect a stock market crash.

Indeed, the stockmarket has been weak for the past week after the US Fed suggested that their monetary policy may change.

I hope that the crash does not happen. If it does, I will handle it as follows:

1. About 60% of my portfolio are in good value stocks with low PE ratios and high dividend yield. I will ignore the current prices and keep the stocks for a dividend yield of over 4%, based on my cost.

2. I hold about 20% in growth stocks (except for Tesla) which have already fallen 50% from its peak. I will wait for their recovery.

3. In the case of Tesla, I am optimistic about its prospects over the next two years as their two new gigafactories will double their production and they still have high demand for their vehicles.

4. As I have invested entirely with cash, I can hold on to the stocks for as long as it is needed for their recovery.

Tan Kin Lian

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