Sunday, 10 April 2016

Where Is The Volality That Is Seriously Affecting Us? Asset Value Or Cash Flow?



Uncle8888's Wealth Formula:

Wealth = Asset Value + Cash Flow


Look at the two images closely!

What is your thinking now?

Should we be seriously over concern about market stock price volatility if we have been managing our cash flow reasonably well enough to meet our liquidity need year after year?
































3 comments:

  1. CW, just guestimate your cashflow...

    60% from Interest
    20% from Dividend
    10% from Trading?

    Your Interest & Dividend income already meet your min expenses liao. So, profit from trading is a bonus.

    However, why your interest income so high? Too much Cash tie up in CPF and or FD? LOL...



    ReplyDelete
    Replies
    1. Where is Mr. Bear? The Interests to Dividends Convertor. LOL!

      Delete
    2. Mr Bean is still sleeping... likely won't wake in near future. :(

      The QE in US, EU and Japan has prolong the economic cycle.

      Now another dose of Negative Interest rate will even push the economy up further.

      Mr Bean will wake up unless there is a black swan...

      Delete