Passive portfolio in minus, what to do?

Very important post for those who hold passive portfolios

Recently received such a letter. Literally quoting

I hold a passive portfolio for about 8 months. At the moment I purchased funds, replenishing monthly. Not all green, some funds (Eurobonds) have long been red. I would like to know further your actions in such a situation.

I want to say that you are a big one, which is replenished every month, and you need to do.

And now about the red in the portfolio.

The fact is that in passive portfolios that are assembled quite recently (and 8 months this is not the term) is always something first in the beginning. But your regular purchases they will determine the situation, and the annual rebalanses will make their job.

BUT. In a passive portfolio, there is always something stronger to grow.

Let’s see one of my passive portfolios:

QQQ — Plow + 136%


Does it mean, I bought TLT in vain — no. The bond fund has a reverse correlation to the indexes and is needed in order for the drop in the portfolio falls not so much.

Very important!!!

If the market falls, the passive portfolio will also fall, but if it is assembled competently, then less than the market. True and it will grow a little less than the market.

And according to the result of 10 years, the portfolio will show the yield close to the yield of the index. In passive strategies no longer earn. This is 8 at best, 9% per annum.

If you want more and not to experience the awards of big, then there are already active strategies. But this is the topic of another post.

In the picture Active Strategy

If you still want to learn how to correctly choose the tools of the stock market? In our consultations, we explain on your fingers, where to start and where to invest savings. Our strategies make money from 8% per annum in dollars.