Investment Strategy 2

After you understand your investment strategy and your risk profile, the next step to do is to plan your asset and currency allocation. Assume that your investment style is moderate, you are in mid twenties and you do not have immediate requirement for your cash, you can invest in a balanced portfolio. You can consider the following allocation: 50% in cash, 30% in equities and 20% in alternatives (ie commodities etc. They are considered alternatives as they typically have a negative correlation with equities.) Even if equities drop 30% and alternatives drop 30%, the overall impact to your portfolio will […]

Investment Strategy Part 1

Investing is like a game. However, it is not a zero sum game. It does not mean that if you win, the other party will lose. For eg. If you buy China Fishery at $0.65, and sell it at $0.70. Does that mean the buyer who bought from you is a sucker? Nope. He likes China Fishery because he thinks it can go up higher than $0.70, perhaps with a 2 year horizon. Does that mean that you should have sold it higher? Nope. This is because you may have a better investment alternative which may not appeal to other […]

Why invest?

Investing is gaining importance over the years, especially against the backdrop of negative real interest rates in Singapore. People want to insure their futures and their families, and they know that, if they are depending on CPF, and in some cases retirement plans, that they may be in for a rude awakening when they no longer have the ability to earn a steady income. Investing is the answer to the unknowns of the future. You may have been saving money in a low interest savings account over the years. Now, you want to it to grow at a faster pace. […]