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How does football formations relate to structuring a portfolio? Stay with me here!

For my own portfolio I oscillate depending on market conditions. If I'm bullish I have a more attacking stock formation, such as a 3-4-3. If I'm being cautious I'll take off some of my strikers (growth stocks) and replace them with defenders (defensive stocks), such as a 5-4-1. If I really want to 'park the bus' I might even play with two or three goalkeepers.

Quick plug: I cover topics like this and stock selection on my YouTube channel. Here is a link to the Football Formation video

Hopefully this visualisation tip helps you think about which of your stocks are in playing in which positions, and if you currently have the right formation given the current market conditions.

If you're playing against a weak side (bullish market) you probably want a more aggressive formation and go for the win. If you're playing against a strong side (bear market) you want to be more defensive and keep a tight ship.


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