I started serious Investing Journey in Jan 2000 to create wealth through long-term investing and short-term trading; but as from April 2013 my Journey in Investing has changed to create Retirement Income for Life till 85 years old in 2041 for two persons over market cycles of Bull and Bear.

Since 2017 after retiring from full-time job as employee; I am moving towards Investing Nirvana - Freehold Investment Income for Life investing strategy where 100% of investment income from portfolio investment is cashed out to support household expenses i.e. not a single cent of re-investing!

It is 57% (2017 to Aug 2022) to the Land of Investing Nirvana - Freehold Income for Life!

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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!












Posted by Createwealth8888 at 16:21
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