I started serious Investing Journey in Jan 2000 to create wealth through long-term investing and short-term trading; but as from April 2013 my Journey in Investing has changed to create Retirement Income for Life till 85 years old in 2041 for two persons over market cycles of Bull and Bear.

Since 2017 after retiring from full-time job as employee; I am moving towards Investing Nirvana - Freehold Investment Income for Life investing strategy where 100% of investment income from portfolio investment is cashed out to support household expenses i.e. not a single cent of re-investing!

It is 57% (2017 to Aug 2022) to the Land of Investing Nirvana - Freehold Income for Life!

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

Sunday, 27 July 2014

Stress Test on Investment Portfolio for the next Fat Bear!


When the next Fat Bear strikes!
(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.






 Stress Test on Investment Portfolio for the next Fat Bear!


Current Portfolio @ 25 Jul 2014
























 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:


 



Benchmark against CPF OA rate @ 2.5% return?

 Just don't feel that bad at market low should be okay.

 Can recover. Right?

Posted by Createwealth8888 at 11:01
Labels:

9 comments:

  1. Rolf Suey27 July 2014 at 15:26:00 GMT+8

    Hi Uncle CW8888,
    War Chest all kept in bank (non-FD) or biscuit tin?
    Close to 50% war chest matching portfolio, is your suggestion for now?
    When STI drop 20%, do we deploy war chest gradually or at one go?
    Rolf

    ReplyDelete
    Replies
    1. Createwealth888827 July 2014 at 16:23:00 GMT+8

      Some ready cash for fast actions and the rest in FD.

      When opportunities strikes, we will have enough time to cash out FDs one at a time and no bother with the early termination penalty fee.

      Many nice birds in the bush to catch. LOL!


      Delete
  2. Money Honey27 July 2014 at 15:52:00 GMT+8

    very important lessons from real person, real examples on The Salted Fish :-

    http://boringinvestor.blogspot.sg/2014/07/the-salted-fishes.html

    ReplyDelete
    Replies
    1. Createwealth888827 July 2014 at 16:35:00 GMT+8

      Good one!


      Hope more retail bloggers will do more real life, real people, real examples posting so that newbies can expect those pains waiting for them.

      It is not like spending 15 to 20 mins a day to become rich. No pain Many gains!


      Delete
  3. Anonymous27 July 2014 at 16:36:00 GMT+8

    My experiences tell me i am always too impatient ("Kan Cheong Spider") Too early to buy and to early to sell. Heck! Who cares? As long as i make some money, who cares? As long as i am living and want to invest, i am still learning lol. i am still trying to improve on my patience. (read my fear and greed).

    ReplyDelete
  4. Anonymous27 July 2014 at 17:33:00 GMT+8

    For you, you go to the sea of water to hone your patience. For me i hone my patience in the (“人 山 人 海”) crazy sea of people in the stock market. Always thinking how to get better at "fishing".

    ReplyDelete
  5. Investopenly27 July 2014 at 23:21:00 GMT+8

    Hope the next fat bear coming soon.. ;-)

    ReplyDelete
    Replies
    1. Createwealth888828 July 2014 at 10:09:00 GMT+8

      You are ready to upgrade to fat wallet for fat bear?

      Delete

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