SundayTimes, 31 Aug 22, Me and My Money
Trust in the power of compounding, don't try to time the market
Hmm .. another way of achieving this type of "growth" passively over our lifetime is ....
We can also trust in the power of topping up of dividends as Panda/Koala retail investors in Singapore or voluntary cash topping up as in 1M65!
Always goes up over our lifetime!
Posts
CW,
ReplyDeleteOf course she would say so as a "vested interest" ;)
In contrast to brokers or SGX who would prefer clients to trade more, those we charge commissions for Assets Under Management would shill the opposite!
I mean if clients "time the market" and cash out with profits, they earn what?
Best if clients only buy and never SELL!
Bequest to grandchildren even better!!!
Another word for "trust" is "faith".
If these peddlers of low cost mutual funds and ETFs so confident, just give a money back guarantee if in 30 years you lost money, they'll make you whole.
And that's not too much to ask for "trust" right?
For even if we get all our capital back in nominal terms 30 years later, we have lost a chunk in purchasing power!!!
Just like if we started the 1M65 journey at age 35.
Some may get a rude shock when that 1M at age 65 can only afford us a brand new HDB 3 room BTO...
Don't believe?
Anybody remember property prices 30 years ago?
Property prices also always go up!
But did EVERYONE made money?
No right? Some lost money in properties until drop pants...
Those who "timed the market" or those who blur blur got lucky (got married at the market low) made a lot more than those who anyhow enter the market near the peak!
So if you are a property agent or developer, what would you shill?
Don't time the market! Anytime is a good time to enter the property market!
LOL!
Does snake oil wear hat? Easier to spot them. LOL!
DeleteCW,
DeleteSee? Drop literature lah!
But no worries!
Just watch serial dramas from Korea, China, US, anywhere!
Aunties love them!
That's why when we move our backside a little bit, they oredi knew what we up to!
LOL!
Tip: One way to READ people is to find out their MOTIVATION ;)
For eg, Why do people want to "HELP" strangers get rich?
When we see siblings fighting in court over their inheritance???
People "love" strangers over their own siblings?
Uncle 8888
DeleteSnake oil don't just wear hats, they wear masks as well, facial mask hahaha
True! Often see them smiling wide in U Tube presentations. LOL!
DeleteI don't read the newspaper, so I don't know all the details ... but are there "low cost mutual funds" in S'pore?
ReplyDeleteI only know the Infinity series from Lionglobal/OCBC and those on Endowus platform ... but they're still not cheap.
Someone who works in VC investing/speculating in early-stage companies saying don't time the market? Ok ... kekeke.
If you read the staff backgrounds of the VC company, I think "timing" just screams at you ... career moves & switching from one company horse to another. ;)
It probably makes sense in a contrarian way...
If you have a very high paying job but involves risky timing & volatile sentiments ... you probably want your savings & investments to be managed in a more stable, measured & consistent manner.
A civil servant on the other hand, may be better off cultivating more risk taking in investments (incl. properties or biz sidelines) to accelerate FI.
Anyway consistent DCA (I presume that's what she's doing) is an automated form of market timing ... buy more when prices are low, buy less when prices are higher.
For this to work, the keyword is "consistent". It doesn't work for most people because when stocks drop, they stop DCA-ing. 😂