An investment portfolio is a very good concept for Investor.
It's useful for retail Investor as well.
Just set aside your investment fund into a separate bank accounts, use it only for investment purposes. eg invest in shares, unit trust, or FD.
It's your portfolio consist of CASH, FD, SHARES & UNIT TRUST (IF ANY).
In good time when you are bullish, you can increase your shares holding to 75%, cash 25%
When you see the market overbought & overprice, then you reduce it to 50% shares & 50% Cash.
When market depressed & you foresee a tsunami coming, you will exit the market and reduce the shares to 25% and CASH 75%.
You must treat your Investment as a Portfolio, then only you know where you stand, under invested, over-invested or all 'sleeping' in bank accounts.
In this bearish market, while we all waiting for the 2nd tsunami & market facing with many uncertainties, a smart & success investor like 'Samgoss'(www.samgang.blogspot.com) is only maintaining a 15% shares 85% Cash Portfolio.
If market being sell down, the good fundamental stock drop to attractive valuation (low PE) level, prolong bear market offer us a good opportunity to pick up good stock, then I believe most of the 'prepared' investor will increase their shares Vs Cash ratio.
2 comments:
Good enlightenment! I love yr blog, yr child will be proud you, a man that willing to share his wisdom and knowledge, will returns many blessing to you,wish you all the best in yr investments!.
Hi ! Chen,
Financial knowledge is important in our life cos we all need money to live.
It's unfortunate our govt do not introduce this subject in our education system.
I write my believe AND things that I know. I am still in learning stage & grad to see so many blogger in Malaysia that give us the opportunity to learn.
Samgang, Malaysiafinance,Moola, Ben, stocktube and many others...
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