March 2024 treating your portfolio badly? Read this…

When things are good with the markets, you are most likely to get the following questions: How are your stocks doing? Let us assume you have a fair sense of what’s happening with your net worth and move ahead. Last year, as stocks rallied sharply, sometimes by hundreds of percentage points, a well-allocated net worth probably increased by only about 20%. On the other hand, when stocks start to fall rapidly, like what we have seen in the last two weeks where portfolios focused on certain segments could have collapsed by 15% to 30% or perhaps a lot more, one’s net worth probably moved by about a marginal 1% or 2% at most. Net worths move a lot slower than a racy small-cap portfolio…but when it does move over time, there is a high impact on your life.