Paper losses are like ice cubes, but you shouldn’t always think you can melt it back to liquid by pouring more water on it Let face it, paper losses are never good for any portfolio because it simply means that stocks were purchases at a bad time or a high price. Although that might be true most of the time, it is also possible to classify your paper losses into categories and benefit from it. In this post, we will be discussing types of paper losses and what we can do with them in your portfolio. 1. 5-15% paper losses All three banks DBS, OCBC and UOB are largely tagged to the index (vice versa) Small paper losses are usually caused by market fluctuations or cyclical price movements. As such, it is best to hold and accumulate if the market conditions are stable at
What does paper losses mean to our portfolios?