Saturday, 9 February 2019

What I Did Over The Last 19 Years Across Market Cycles And How I Am Preparing For The Next Market Crash

Normalizing these parameters to common denominator of 100% for STI, war chest, cash-flow, stock value and portfolio value (including cash not invested).

 This can help him to visualize these parameters relatively. No free lunch. It is about trade off and opportunities.
1) War chest at inception of investment portfolio on Jan 2000 as 100%

 2) Stock value at Oct 2007 as 100%

 3) Portfolio value at Oct 2017 as 100%

 4) Cash-flow in 2007 as 100%

 5) STI at Oct 2007 as 100%
Inception --> 2007 Bull High --> 2009 Bear Low --> 2018 New Portfolio Value High --> Feb 2019 
                   STI : 67% -->  100% --> 38%     --> 93% --> 83%

         War Chest : 100% --> 12%  --> 3%      --> 142% --> 142%

  Portfolio Value : 41%  --> 100%  --> 47%    --> 112% --> 103%

       Stock Value : 0%   --> 100% --> 48%     --> 49%  --> 38%

          Cash-flow : 0%   --> 100% --> -116%  --> 21%  --> 11%










Let see how Uncle8888 is doing over the next market cycle.























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3 comments:

  1. Rainbow12 February 2019 at 00:47:00 GMT+8

    Hi Uncle8888,

    Just wondering why cashflow so jialat... Bear low -116%. Does it mean cashflow out to put into investment?

    How to derive the %?

    ReplyDelete
    Replies
    1. Createwealth888812 February 2019 at 08:15:00 GMT+8

      Cash flow from the stock market = dividends + net trading P/L

      In 2007; I made lots of money from contra trading and it was the highest money ever made in one year so it is reference as 100%.

      In 2008; I lost back all of 2007 money and more i.e. -116%% and chopped fingers on contra trading.

      Delete
  2. CreateWealth888812 February 2019 at 08:58:00 GMT+8

    To really to keep our winning money is to know when to stay away and be safe. Low return is better than losing back which is not fun

    ReplyDelete