As from April 2013 my Journey in Investing is to create Retirement Income for Life till 85 years old in 2041 for two persons over market cycles of Bull and Bear.

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"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

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Friday, 9 August 2019

Market Timing, Cash Drag And Past Performance

Cash: "Cash drag" is a common source of performance drag in a portfolio. It refers to holding a portion of a portfolio in cash rather than investing this portion in the market.

How bad is cash drag?

Should he be guided by his past performance to look forward?

 Best  : 12% CAGR
 Worse : 1.6% CAGR

Does cash drag and market timing a serious hit in his performance over the next 10 years?

Current with cash drag : 6% CAGR

Let see what happened when he looks back few years down the road.

Let the data and the Maths do the talking!


  1. Can we look at investment this way?

    At point 10 year period, absolute profit $100,000

    Further down the road 13 year it is also $100,000

    16th year point also absolute profit $100,000.

    So what happened?

    Good, so, so or bad?

    CAGR no good?


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