Read? Return On Human Asset vs Return On Financial Assets???
Are we really that good (with FA, TA, or combined FA+TA) in generating good return on our financial assets through our investing knowledge and skills?
or
We just rise and fall with the tide of market cycles of bulls and bears?
You can see that Uncle8888's yearly Return on his human asset is more favorable across economic cycles of booms and dooms.
Living on investment income when we are much younger?
You can make your judgement call after reading this post.
Which is more reliable source of income for MOST of us?
The rise of Big Bull may have made us feel like Gu Shen and thinking that we may have finally got it "Right"! We are ON THE WAY!
But, the follow-up Big Bear will teach us what is truly the "Right" thing to do after sensing the rising power of earning investment Return during a Bull Run.
His Yearly Break Down chart will show the true picture of his last 15 years of investing journey. The Rise and Fall across market cycles.
Now, he is planning on how to better ride the tide of future market cycles of Bulls and Bears.
Read? You Can't Predict. You Can Prepare - Updated on 25 Jul 2014
Beware! Following a large gain we may become even more aggressive when the tide turns against us to indicate that we may be wrong. But, we may choose to ignore and bet even bigger to prove that we are "right".
ReplyDeletetemperament,
ReplyDeletePassive indexing as a vehicle is only popular and possible in Singapore when we finally have the first STI ETF.
We may have to wait for another 20 years before we can hear what's their true experience with this "Look ma, no brains needed!" way of "investing.
Having said that, a TRUE passive index investor will not buy the STI ETF as it's too narrow a concentration of stocks and therefore "too risky".
Of course nothing wrong if we want to invent our own definition or school of passive indexing ;)
Just like I've customised my own variation of Trend Following to fit me and me alone.