- Defensive investments are usually promoted to those in retirement or close to it. However, we should all always be defensive investors.
- Neither bonds nor general stocks are defensive investments, no matter the diversification or quality of the bonds.
- Cash is the only defensive investment in this market. Other options are positive asymmetric risk reward investments.
Many will say that a portfolio owned by an investor who is about to retire or is retired should be a defensive one. However, I find focusing on age isn’t smart because no matter our age, we have to always protect our portfolio and try to maximize returns. After all, isn’t the first rule of investing to never lose money while the second rule of investing tells us to read rule number one again? More →