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Yay, diversification. They have stable investments they can draw from to purchase the now-insanely-discounted investments in the market, and come back in a much
by orthecreedence 8y ago
Yay, diversification. They have stable investments they can draw from to purchase the now-insanely-discounted investments in the market, and come back in a much stronger position than before the crash.
So, no, you sell at a stable rate to buy at a discount rate.
- kgwgk 8y agoWhat are those “stable investments”? Investing is easy in hindsight, but the only “stable” asset is cash, and waiting for the entry point can be costly. Exit: to be clear, I’m a huge diversification advocate. But each crisis (and each bull market) is different and rebalancing is not always helpful.
- orthecreedence 8y agoStable investments: stocks in profitable companies that pay dividends, rent from property ownership, bonds, etc.
- kgwgk 8y agoReal estate was down in line with equities in the last crisis, so switching from one to the other was not selling a "stable" asset to buy a "discounted" one.