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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Welcome to Ministry of Wealth!

This blog is authored by an old multi-bagger blue chips stock picker uncle from HDB heartland!

"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

"For the things we have to learn before we can do them, we learn by doing them." - Aristotle

It is here where I share with you how I did it! FREE Education in stock market wisdom.

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Value Investing
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Wednesday, 2 December 2020

Is Bull Market Always Creating An Illusion Of Wealth In The Stock Market???

 Uncle8888 has learnt his Lesson 1 in the stock market i.e. illusion of wealth in 2007 Bull Market and then after 2009 GFC his Investing Mind has been fully mindful of this illusion of wealth and he knows clearly the difference between Real and Imaginary Parts of his Wealth in the stock market and develop practical Money Management to safeguard and ring fencing from losing a large part of this illusionary wealth back to the next incoming Big Bear! When will it happen again? or never?


  1. Hi Uncle8888,

    All the "motherhood" statements over the decades have been in response to "illusion of wealth" in risky markets. ;)

    Things like emergency funds, diversification, position sizing, asset allocation, risk appetite, loss tolerance, knowing yourself, objectives, controlling greed, what is "enough", getting wealthy versus staying wealthy etc.

    What's that saying about old bold traders? LOL!

  2. CW,

    We've learnt from "crash got sound" what's the difference between:

    1) Theory and Practice.

    2) Knowledge and Wisdom.

    The trick with investing/trading/doing our own business is to SURVIVE long enough so we can start to PROFIT from our MISTAKES ;)


  3. Invested wealth is an illusion indeed.

    As I get nearer to retirement, I try to minimise this "illusionary" portion of my assets and channel more and more money into "more dependable" assets including our dear CPF accounts.

    The CPF despite its relatively low and boring returns, is one asset class where one can project the savings trajectory into the future with high certainty unlike the illusionary assets where one cannot even tell if it will increase or decrease from one day to the next.

    One can set realizable targets for CPF savings to be attained at different ages with confidence (like what some young followers of the 1M65 movement did) but setting targets for equities is more crystal-balling than anything.

    1. That's why i practise "Cycle Investment" in stock market from day one.

      But must learn a bit more from CW888 about short term trading around a core and trend.
      If not really boring, boring investing in the stock market.

      No wonder stock market Gurus say investing is like or should be like watching fresh paint drying on the wall.

      How exciting can that be?


  4. That's why we have the new term in America - the K shape chart economy.

    Those who are able to play the market and those who queue in their quite good cars in a long line @ food banks.

    U of course know who are on the upper of the K chart.

    That's the new K economy for the most "Democratic" country of the World?
    Even the President of the day can say anything without problems in Public until stop at the Court.


  5. "When will it happen again? or never? "



    Even a successful veteran in stock market ask this ????

    Ha. Ha.

    What's more for Bei Kaming???

  6. cant help to ask question abt this topic on illusionary wealth or 'paper gain' so how? do we stay invested ? or move our fund to safe heaven like cpf? but cpf had got limits or move into bonds? i thk bonds are risker than shares haha

    1. do we stay invested?

      Yes but we have to be mindful that we don't know when Mr Market will change his mood.

      Are we able to know that his mood has already changed and seek to protect paper gains from losing back?

      This skill or wisdom we have to build up on own across market cycles and the other skill is our money and portfolio management to relation to our view of Mr Market's mood.

      It is up to us to feel our own emotions. Which is less scarier or painful?

      To REGRET NOT making more from Mr Market or to FEEL sorry or frustrated for losing back BULK of illusionary wealth to Mr Market.

      3Ms - Method, Mind and Money Management. Mind and Money management will take more time and effort to build up across market cycles. Going through one full market cycle will help to understand more.

    2. Generally, yes Corporate Bonds are as risky though bond holders got to pay first when corporate go kaput.

      For me i like to invest in Corporate then it's bond because.......

  7. Actually, nobody knows when the market changes it's mood, nobody.

    All are fortune tellers who claim they know when.

    But Do U know what is in Chinese slang, "Ma Ho pow"

    After it happened, do U have to know?

    That is more or less "Cycle Investing" for life.

    1. i started at 40.

      So the earlier U start "Cycle Investing", the longer time factor advantage U have.

      Who really cares why the Market changes it's mood if U can take advantage of this Rinse, Repeat strategy. - Must have Guts.

  8. recently with the CRCT rights issue i started to get de-illusionised by the promise of high dividend from reits. looks like bo hua leh, we get the so call high dividend but then when we play the chasing games of getting of rights issue. it looks like we are paying back our hard earned dividends and there are very limited capital gain and worst some reits price keep dropping. so i searched cw8888 blog and found that he is not a reits investor! i have 40% reits and are going to reduce them. that leaves us to only a few options to buy in the blue chips with high dividend. like that how to receive enough passive income to retire early har :(

  9. also i am curious cw8888 do short term trading eg recently sold dbs at $24+ then how do u decide how many lots to keep for long term investing to collect dividend and how many lots for short term trading. i had dbs at $14 i thk i bought in 2016 and $19 bought in oct 2020 too.

    1. Buy slowly in Batch/Round and Sell in Batch/Round. When I decide to Sell to lock in gains i.e. fulfilling 1st component of the Secret Formula = N x (Buy Low. Sell High) + N x Panadols + N x Golden Eggs + n x (Buy - Hold), Where n << N and Hold = current stock price. I also already decided on Buying back price. Sell and Buy Back as a pair.

      You have decide for yourself "dbs at $14 i thk i bought in 2016 and $19 bought in oct 2020" are your Touchstone for keeping or Sardine. $14 is likely a Touchstone. How about $19? You have to feel it yourself!

      Still not sure. No harm selling partially in 1/3, 2/3 and 3/3 as it goes higher and buy back in the Reverse 3/3, 2/3 and 1/3. If we are right, hosey liao! N is getting bigger!

      Read? Touchstone or Sardine?

    2. Actually life is circle.

      Round and round we go; 4 seasons, the stock markets, Sun Rise, Sun Set(Song from Fiddler On The Roof); ........

      How many rounds U can go b4 U stop at your starting point again; (Time to say Japanese Goodbye-Up The Lorry);.......

      The question is how U understand yourself to make your round accordingly.

      Full of Ink will do Full of Ink way - Like CW8888.

      BTC will do BTC way; Me lol.


    3. Ha. Ha.

      Not a shame, to admit why i am with here more than 6 to 7 years because this is one way of the BTC's way to learn from people willing to share here.

      Once again, many thanks to CW8888 for sharing and hosting me all these years; even when i spit up nonsense.


    4. complicated formula haha but looks like no straightforward answer haha if the dbs i bought at $14 i treat as sardines i wld had alrdy sold it. there will be no touchstone in my portfolio. sounds like to treat my panadol as touchstone until the bull comes then i treat it as sardines and sold it for a profit

      i still must thank u for the generous knowledge shared and the time taken to explain and show us your way :)

    5. But every Bull comes, there will be another after the Bear comes.

      So again, Life is a circle really.

      Only when profit is enough for us to sell even in a bear market if needed money.

      The best i think is still is U can always choose when to sell and be happy about it - no regret.

      Because the market is always there for U to buy after U sell.

      Another round of circle lol.

  10. Though WB said the best is to buy a stock that be hold forever.

    But actually how many stocks he buy, he can hold forever.

    Just look at DJI, how many stocks that have been replaced that even don't exist anymore.

    Life is a circle.


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