A good strategy is to sell or short call options on a security or stocks that you are buying into.
Or continue to think long term
Honestly, long-term investors shouldn’t be too concerned about the stock market performance over the next six months.
History shows that a diversified basket of stocks is nearly certain to generate a positive return over a 10-year period.
If your goal is to achieve a diversified long-term investment portfolio that generates a sustainable return, your focus should be on the company’s financial performance, its competitive advantage, balance sheet and management transparency.
In fact, I think the market weakness offers an opportunity for investors to gradually build up their portfolio.
This can consist of buying companies that have a strong track record and generate value for both their shareholders and customers.
Disclaimer: ProsperUs Investment Coach Billy Toh doesn’t own shares of any companies mentioned.
Billy is passionate about the capital market and believes in investing for the long haul. Prior to this, he was an economist at RHB Investment Bank, covering Thailand and Philippines market. He also worked as a financial journalist at The Edge Malaysia and has experience working with an asset management firm. Aside from the capital market, Billy loves a good conversation over a cup of coffee, is a fitness enthusiast and a tech geek.