My Portfolio At The Year I 've Made Major Change

1261 WordsSep 7, 20156 Pages
Kiss Retirement Portfolio: Reviewing my Portfolio • Over the last year I’ve made major changes to my portfolio. • One of my major concerns is how my portfolio will perform during corrections and bear markets. • Given the recent correction, I thought it would be good time to look at how my portfolio is holding up. RISK Investors define risk and loss in different ways, to keep us all on the same page, I believe it is import to clarify my thinking on risk and loss. What follows is an explanation of how I think about risk and loss; I am not claiming that you need to define risk and loss in the same manner. I invest to increase my purchasing power, understanding that if my investments do not work out my purchasing power will decrease. My definition of risk is the potential loss of purchasing power. A loss is a loss. You either have the money to spend or you do not. If I need one million dollars to get in on a real estate deal and my portfolio is now worth seven hundred and fifty thousand, than I can’t participate in the deal. It doesn’t matter if my portfolio was worth one million last month and I think the market is under valuing my holdings. I either have the money to spend or I don’t. A loss occurs when my purchasing power decreases – it doesn’t matter if I sell or not. Markets are volatile so any investment loss may be of short duration and the daily gyration of the market don’t really matter that much. On the other hand, you only know how long an investment

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