As from April 2013 my Journey in Investing is to create Retirement Income for Life till 80 years old for two over market cycles of Bull and Bear.

Click to email CW8888 or Email ID : jacobng1@gmail.com



Welcome to Ministry of Wealth!

This blog is authored by an old multi-bagger blue chips stock picker uncle from HDB heartland!

"The market is not your mother. It consists of tough men and women who look for ways to take money away from you instead of pouring milk into your mouth." - Dr. Alexander Elder

"For the things we have to learn before we can do them, we learn by doing them." - Aristotle

It is here where I share with you how I did it! FREE Education in stock market wisdom.

Think Investing as Tug of War - Read more? Click and scroll down



Important Notice and Attention: If you are looking for such ideas; here is the wrong blog to visit.

Value Investing
Dividend/Income Investing
Technical Analysis and Charting
Stock Tips

Saturday, 16 August 2014

Stress Test on Investment Portfolio for the next Fat Bear! (2)


Read? Stress Test on Investment Portfolio for the next Fat Bear!


(Carnegie 49)

 If you have a worry problem, do these three things: 

1. Ask yourself: “What is the worst that can possibly happen?
2. Prepare to accept it if you have to. 
3. Then calmly proceed to improve on the worst.


Assumptions

1. Doing nothing now i.e. no more re-balancing of portfolio.

2. Current holding stocks drop 50% from last Friday market closing price.

3. Start deploying War Chest after STI turns Bear i.e. drop of 20% from its recent peak.

4. New positions from War Chest drop an average of 30% from their initial investment cost.


 

Stress Test Result:


Still a Winner!

But, loser to inflation.







 




1 comment:

  1. Just regret not making more but not in sorry state of losing hard earned money. Okay lah!

    ReplyDelete

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