Surviving the Tech Crash in Seoul: Why John Bogle's Advice on Asset Allocation is Crucial Right Now
Hey guys, it’s been a crazy week in the markets, hasn't it? With semiconductor stocks taking a massive hit and the Nasdaq plunging over 5%, I've been hearing non-stop chatter about the so-called "AI bubble" finally bursting.
To add fuel to the fire, the upcoming earnings reports from private credit firms like Apollo are keeping everyone on edge. The whole vibe in the market is just incredibly tense right now.
But honestly, whenever things get this chaotic, I always go back to what John Bogle, the legend behind index funds, taught us about surviving market crashes.
If you’re a long-term investor, his first piece of advice is to completely shut off the news and social media for 24 hours.
Seriously, our brains aren't wired for this kind of stress, and panic-selling your assets at a loss is the worst thing you can do when that animal instinct kicks in.
The second thing you need to do—once you’ve calmed down—is to take a slow, hard look at your portfolio's asset allocation.
Think about what your target percentages were supposed to be. If your stocks have tanked, it’s time to sell some of those outperforming bonds and buy the dip in stocks to rebalance.
Finally, remember who you are as an investor. We aren't day traders trying to time the market; we are long-term owners of businesses, patiently riding out the economic waves to capture broad growth over the years. Remember the 2000 Dot-com crash when tech PE ratios were at an insane 150? Or the 2008 financial crisis?
Capitalism survived, and the economy recovered. Keep buying, trust the system, and use this downturn as a prime opportunity to rebalance.
Here are a few resources to help you check your current portfolio status and get your mind right during this dip.
Check out this investment calculator to project your long-term compound interest growth.
https://bomspring.com/invest-calculator/
Learn how to manage your Hive assets and understand the Clarity Act for crypto stability.
https://bomspring.com/clarity-act-hive/
Explore the fixed yield strategies on STRL to secure steady income during volatile times.
https://bomspring.com/strl-fix/
Understand global economic trends and asset allocation know-how to protect your retirement funds with an optimized MDD.
https://bomspring.com/global-economic-trends-that-portfolio-investors-must-know-and-asset-allocation-know-how-to-safely-protect-your-retirement-funds/
Find out how to buy Korean stock ETFs on IBKR for international diversification.
https://bomspring.com/ibkr-how-to-buy-korean-stock-etf/
Discover how to limit your Max Draw Down (MDD) to under 15% for a safer retirement portfolio.
https://bomspring.com/how-to-limit-max-draw-down-mdd-15-for-retirement-portfolio/
See the backtest results on how effective rebalancing is during a market crash, showing improved long-term yields.
https://bomspring.com/how-to-rebalance-in-the-market-crash-backtest-result/