HomeCanadian Investmentgo aggressive or go secure? – The Common Joe

go aggressive or go secure? – The Common Joe


60.9% of buyers surveyed by the AAII are feeling bearish over the markets within the following six months — the best since 2009. Who can blame them? One week it’s inflation, the subsequent, it’s a housing recession.

With markets down 20% this yr, buyers are questioning whether or not they need to play it secure or benefit from decrease costs in higher-risk belongings…

Listed here are some choices for passive buyers:

1/ Keep the course with an ETF that tracks the S&P 500 — just like the SPDR S&P 500 ETF Belief (NYSE:SPY).

  • The case for $SPY: For shares, few choices are as secure as publicity to 500 of the biggest U.S. shares, and it’s possible the most suitable choice for many buyers.
  • If markets go down even additional, you’ll really feel comfy. If markets go up, you’ll get FOMO. Nonetheless, a ten% return every year on common doesn’t sound so unhealthy.

2/ Get extra concentrated into sectors which are extra delicate to the financial system. The Invesco QQQ Belief (NASDAQ:QQQ) tracks the NASDAQ-100 — which holds 102 positions:

  • Heavy focus in: Expertise (55.10%) and Shopper Discretionary (21.55%) sectors.
  • The remaining unfold between: Well being Care (6.20%), Industrials (5.75%) or Telecommunications (5.10%) and others besides non-financial corporations.
  • The case for QQQ: The Shopper Discretionary and Tech sectors are likely to cleared the path after a recession.



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