As from April 2013 my Journey in Investing is to create Retirement Income for Life till 85 years old in 2041 for two persons 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

Saturday, 24 September 2011

Portfolio Stress Test for Big Bear in 2012/2013

Read? Riding through market cycles. No free lunch!

I did a stress test on my portfolio based on my perceived worst case scenario that may happen. The plunge may not be worse than 2008/2009 in super low interest rate of 0.05% and higher inflation rate of 5% environment. The stock market is more likely to be supported as investors simply can't hide themselves too long in Cash.

If you poll or observe the people around you; there are still too many people sitting on lots of cash waiting for opportunity to enter the stock market. They will soon rush in to absorb any selling pressure for yield stocks.

These people know that Cash is not King until you are able to enter the stock market to the ride with the next bull up ; otherwise your Cash is rotting in the bank or money market.


Unlike in 2008/2009, this time I will have more fire powers to rebound with the next Bull so I must sharpen my mind and open my eyes wider to spot the next market gems.




2 comments:

  1. Hi CW8888,

    I got the same result as you. But I reached my conclusion based on STI chart and elliot wave. Basically, the stock market will always have a higher low in order to move up higher.

    Zac

    ReplyDelete
  2. Hi CW,

    Highly agreed. Cash is not king if you let it rot in the banks. Opportunities must be taken when they appear.

    Calvin
    http://www.investinpassiveincome.com

    ReplyDelete

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