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.

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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

Thursday, 14 March 2019

As Retail Investor Do You Stress Test Your Investment Portfolio???


Read? "How Singapore Manages its Reserves"


MAS employs a comprehensive range of stress tests to assess the risks to the portfolio on an ongoing basis and establish whether the portfolio remains resilient to potential tail risk events over the medium term.

Three types of stress tests are conducted:

Historical: Shocks are applied to the portfolio using asset price movements seen in historical stressed episodes, such as the Global Financial Crisis, 2000 dot-com bust, 1994 bond market selloff, etc.
Vulnerability-based: The portfolio is subject to hypothetical scenarios which stress in turn each of the portfolio’s risk factors such as equity, interest rate, credit, inflation, and foreign exchange.
Thematic: These are forward-looking stress tests and are designed by taking into account prevailing market conditions and potential risk events on the horizon.
Depending on the stress test results, MAS will consider appropriate responses and portfolio adjustments when needed.

The risk management framework is reviewed on a regular basis to ensure it remains fit-for-purpose.







5 comments:

  1. CW,

    You naughty uncle!

    Frightening little children...

    Look away now children. Nothing to see here!


    Cannot. You must sweet talk and offer reassurances like the snake oil gurus.

    If you think you can, you can!

    And we just need to set goals and work on our plans. That's all!

    Just invests for the LONG TERM, and all of us will make money one!


    (Of course not a single guru will offer moneyback guarantees)

    ReplyDelete
  2. After reading "How Singapore Manages its Reserves",

    Aiya too cheem liu.

    For individual if able to execute 3Ms (Mind, Money Management & Method)well, is enough already.

    ReplyDelete
    Replies
    1. Stress test is not that cheem. Just feel 50% down can still sleep or panic sell to calm down - I had sold!

      Delete
  3. Talking about 50% down was real for me in 2008/2009

    Anything near that were many times - caught in a quite severe bear markets due to what Sept. 11 2001, AFC, etc.... ??? U name it! i got caught in it!

    Always in the Market can not escape one.

    So still around and prosperous enough (even after making many investing mistakes) to allow me to choose not to stand behind Macdonald's counter or drive a Grab is really thankful.
    Not forget quite good health too.
    Amen.

    Shalom.

    ReplyDelete

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