All investment strategies involve risk of loss of capital, whether in the stock market, in real estate, in business creation, in crypto-currencies, or something else.
However, some strategies are less risky than others.
- In my portfolio I select extremely high-quality stocks, which resist particularly well to financial crises and bear markets.
- I also use specific indicators to go out of the market, when there are bad signals, which could indicate we are entering a bear trend or a crisis.
- My portfolio has a good diversification, with many different stocks in various economic sectors. With this diversification, even if a sector or a specific stock is in trouble, the rest of the portfolio is not affected, and can even compensate.
But you don't have to take my word for it, I invite you to make your own opinion,
here is the full drawdown history since 1998, and a table showing drawdowns during the various crises that have occurred: