After 17 years with this pile of records and his performance review indicated that he should be better off at return on invested capital focus camp for the next market cycle!
BTW, so far majority of personal financial investment bloggers in Singapore are in Yield focus camp.
New dash board!
Including paper profits lost back to Mr. Market will remind him the execution of market timing is also critical.
Posts
CW,
ReplyDeleteFinally!
Prevention is better than cure ;)
No headache; no need for panadols.
Then dividends become icing on the cake :)
Sugar!
Dilemma of young investors with low six digits account size which path they should take to reach that level of seven digits account size and then shout loud to the cyber world and social media friends: Did you see my six digits passive income?
DeletePassive income is like MacD up size if we like to eat more!
Miss the best 10 days or miss the big bears? Something to mull about...
ReplyDeletehttp://3p5bnx3przb73659la2iupn2.wpengine.netdna-cdn.com/wp-content/uploads/2016/05/SSRN-id1908469.pdf
Oh ... Happy Mid-Autumn festival! 😜
Most analysts, unfortunately, stop here and throw up their hands. They proclaim buy and hold to be the only way to ensure being in the market for these best days. Because these events are so rare, and they have such as massive impact, there is infinitesimally small chance of predicting when they will occur and therefore the effort is useless. They take the ball all the way down to the five yard line but stop there.
ReplyDeleteWhat are they missing?
THE HUMAN ELEMENT
Markets are a collection of humans, and being human, a collection of human emotions. Greed, fear, jealousy, pride, and envy all manifest themselves to the fullest in capital markets.
When you are making money you are thinking about the new car you are going to buy, how smart
you are (and how much smarter you are than your neighbor), the vacation you are going to take, and the (2nd, 3rd, 4th) house you are going to buy. The part of the brain that is firing nonstop here is the same region that gets stimulated by cocaine or morphine.
However, when you are losing money you are probably not opening your account statements, you
are thinking about how dumb you are (and how stupid you were to listen to your neighbor), how you are going to pay for that second house, and you likely feel significant revulsion to even thinking about investing. The brain processes portfolio losses in the same region that is stimulated by the flight response.
1. The stock market historically has gone up about two-thirds of the time.
ReplyDelete2. All of the stock market return occurs when the market is already uptrending.
3. The volatility is much higher when the market is declining.
4. Most of the best and worst days occur when the market is already declining. Reason: see #3.Markets are much riskier than models assuming normal distributions predict.
5. The reason markets are more volatile when declining is because investors use a different part of their brain making money than when losing money.
Anyone knows somebody really hold on to stocks since 1987?
ReplyDeleteInteresting to know their outsize return on invested capital. For Malaysia Boleh; read in the newspapers that there are a few millionaire RM early retail shareholders of Public Bank
From the appendix:-
ReplyDeleteSingapore stocks from 1966 - 2008:
Buy & hold annualized return: 7.83% p.a.
Buy & hold only when above 200-day MA: 19.20% p.a.
Of course if you're gifted as Warren Buffett you can identify 4-5 stocks, buy & hold them thru a few major recessions & still achieve 50% p.a. returns ... Hahaha!!!