The big important thing for any Business, Investor, Municipality, Individual to know how to do is to: Recoup Losses as part of an overall Balanced Investment Strategy
$BTC $BCH & other top Blockchains are long term hold: while speculating -- or if long term, not every Pick is a winner in either near-term, where the quality investments bounce back: as well some do not
To: Recoup Losses what you do is add an income generating component to your Portfolio: that is proportional to what you want over the long term: & then Proportional to any Losses :
That is done by building up a: Growth Stock, Value Stock, Dividend Stock, Corp Bond, Muni Bond, Treasury Bond Allocation: that is constantly built up when possible
Recognize those too can fluctuate near term & do that dramatically: that's why you use math to choose the proper allocation: as well while building that up also continuing to build up allocation to Tech [ mostly covered in the Growth Allocation ] as well as to Blockchain as part of a Tech Allocation [ built up around
$BTC Bitcoin, and some simultaneously build up
$BTC $BCH and then a few other top Blockchains [ using Math to choose proper allocation, with now Bitcoin & Bitcoin Cash having big pull backs those successfully using that strategy are getting much more for less: however what future lows can be is up to the Market ]
So with the Metrics BCH Bull Posts with the many Longs who have seen BCH pull back significantly [ though if you average the daily pull back it's approximately $8.7 per day for a big dramatic decline , with now a slow incremental $8.7 or so climb from recent lows ]
To Recoup Losses: you want an allocation to 30 year 0% US Treasuries & you want to pace that over a few months as prices can fluctuate , sometimes significantly as they have recently: now offering strong yields & good prices: around $230 per bond
So: if you lose $10,000 on some speculative, or bet: or some Company that didn't do well: what you want to do is buy around 12, zero-coupon us treasuries that mature in 30 years: then you want to add around 5 corporate bonds such as
$GS and
$AMZN
You then look for Aaa rated Municipal Bonds: the lower prices on the the zero coupons, however you only want to start adding those after you have one or two sets of Muni Bonds that pay coupons [ once you've gotten some Aaa rated then add in some lower credit rated Muni Bonds that are Investment Grade versus Junk credit rating ]
However to begin with you start with one set of Muni Bonds : [ munis are traded in minimums of 5 bonds so to begin with you can start with zero coupons however the next step should be to add a set that pay interest twice per year: it'll be a total of about $200 or so if you find 4% coupon bonds & many now trade under par, under $1000: bonds mature at $1000, that is "par" ]
So then you add in Growth
$QGRO Value
$VALQ or another Brand you prefer: those are pretty good
You then add in a couple stocks: something like:
$200 of
$AAPL $200
$MSFT $100
$BRK.B [ then work up to one share of each over next year or two ]
So total you want to have available if you're making Speculative Investments / Bets where you hopefully make money however could lose: or any investment where you could lose $10,000 is something like:
$3000 for US Treasury zero coupons
$4750 for corporate bonds
$2000 for muni bonds [ Aaa rated zero coupons ] $4750 for muni bonds that pay interest [ work up to that ]
Then $200 in
$QGRO & $200 in
$VALQ
Then $500 in
$AAPL $MSFT $BRK.B [ then add $1000 over time, as well if possible add one other stock to that over time, such as
$TSLA ]
The US Treasuries, 12 zero coupons will make $9000 over 30 years: the corporate bonds will pay $1600 or so over 10 years & make around $500 in interest over long term ] then the $1900 to $2400 into stocks will reflect overall market performance & with current trajectories there's arguably good up side: however the market can & does fluctuate:
over long term with
$AAPL $MSFT paying some dividends tho small they are quality picks, as well over time adding
$AAPL $MSFT corporate bonds is very sensible especially with the lower prices & higher yields currently : as well they are both Aaa rated:
you also want the mid range investment grade corporate bonds such as
$AMZN to add: if credit rating declines that changes the bond & price declines: you want the mid range credit ratings b/c if they go up, the price of the bond goes up: to add to sets of the Aaa top rated bonds ]
So then an Aaa rated set of 5 muni bonds, zero coupons will make around $3400 or so in interest currently: such as
@hhmi_science Aaa rated cusip: 54601TAA4 Virginia Muni Bonds : over long term working up to 10 of some Aaa rated 0% coupons such as that, again is sensible: while building up also sets of bonds that pay interest , whereas 0% coupons do not: and 4% coupons bonds pay $40 per year: the 0% coupon bonds make interest, however do not pay interest as bonds with a coupon do
The US Treasury interest or income is state tax exempt: [ capital gains though are not: if you hold them through maturity the interest is state tax exempt not fed tax exempt} most municipal bonds, not all though, most are federally tax exempt on interest & income: & also state tax exempt in the state they were issued
So this basic example:
the Muni Bonds make $3400:
the US Treasuries make $9240 :
around $1600 in corp bond income in 10 years or so :
thats long term, however projected $14240 in interest & income [ mostly interest from 0% coupons tho so you then want to add corporate bonds over time that do pay interest payments: versus Zero Coupon bonds that only accrue interest ]
Such a Recoup Losses strategy is beneficial to anyone who loses , tho it is over long term
You recognize if you make a speculative / or bet: that could lose $10,000: you want to have $2760 ready to buy US treasuries [ 12 zero coupons ] & $1600 ready to buy Aaa rated muni zero coupons: & $4750 or so ready to buy corporate bonds & $1000 ready to buy Growth Value stocks: around $10,200 ready to cover potential losses on riskier / speculative or even strong companies that have potential for losses
Plus on top of that another $2000 to build up more long term
$BTC &
$BCH
Then some fraction or multiple of that: if your speculative / bets are lesser or greater
Those who use a Balanced Strategy are prepared for the fluctuations & down turns & benefit as well during the upward trajectory on quality investments: our editors favor both
$BTC $BCH : some only like one or the other: some vocal Maxis trash one or the other, however the numbers show Clearly the silent majority appreciates & uses both: they build tech with both, build businesses with both: bch tho small is good for bitcoin & btc is obviously good for the much smaller bch: in Applications [ businesses ] they are both very powerful
However for now the Longs on
$BCH are more on the down side: while the more long-term is still up [ where bch at $200 or so now is still up 100% from a long stretch bch had around $100 ] -- so it's always good to contemplate Loss Recoup strategies that work such as this example [ be reminded tho bonds also fluctuate, thus it's important to allocate property into bonds that you would hold through maturity ]