Asset Allocation 01 (Jun 09 - Jul 13)

[kennynah]

I'm expecting Window Dressing to keep the market afloat for the next 2 weeks.

That means that if I want to reduce my exposure to Equities, I should do it during the last few days of September.

Current Allocation:-
Equities: 34%
AUD: 29%
EUR: 8%
Gold: 9%
Inverse ETF: reduced to 0%

here, the assumption is that funds managers make money only on uptrending and bullish positions.. which we know they also profit on bearish markets as well..

it is a fallacy to imagine that window dressing means funds houses will prop up prices to show their profit generated from LONG positions... if so, GS would not have been able to showcase their sterling performances in the 2008/2009 period...

[winston]

You need to separate the Hedge Funds from the Long Funds.

The elephants in Equities are not the Hedge Funds. They are the Long Funds.

The Hedge Funds do not focus on Equities only as they can do many instruments eg. Currencies, Commodities, Bonds, Equities etc.

[winston]

Size of Hedge Funds and Mutual Funds Industries

The estimated size of the global hedge fund industry is US$1.9 trillion.

The estimated size of the global mutual fund industry is US$16.5 trillion.

At the end of 2010, there were 7,581 mutual funds in the United States with combined assets of $11.8 trillion, according to the Investment Company Institute (ICI), a national trade association of investment companies in the United States.

The Investment Company Institute (ICI), reports that worldwide mutual fund assets were another $4.7 trillion on the same date.

Source: Wikipedia

[winston]

TOL:-

Now that things have rebounded, what should be the Asset Allocation ?

Let's start with the beginning:

Now that the market has rebounded, it's better to be more conservative.

Strategic Allocation: Increased from 70% to 80%
Tactical Allocation: Decreased from 30% to 20% ( for short-term Scalping & Swing Trading )


For the Strategic Allocation of 80%, I should allocate them as follows:-

1. Equities - 35%
a. Dividend Stocks - 15%
b. Growth Companies - 10%
c. RNAV Plays - 10%

2. Physical Gold - 10%

3. Cash - 35%


As for the Tactical Allocation of 20%, I may also buy some S&P Inverse ETF. ( I'm still waiting to see whether the S&P has hit some major resistance ).

[winston]

Current Allocation:-

Equities: 31% ( Dividend Stocks 14% )
AUD Cash: 30%
EUR Cash: 0% from 8%
Gold: 9%
Inverse ETF: 0%

Need to buy on any dips, to increase my Equities Allocation to about 35% to 40%.

[winston]

Current Allocation:-

Equities: 31% ( Dividend Stocks 14% )
AUD Cash: 30%
EUR Cash: 0% from 8%
Gold: 9%
Inverse ETF: 0%

Need to buy on any dips, to increase my Equities Allocation to about 35% to 40%.

Equities: Increased from 31% to 37%

[Chinaman]

Current Allocation:-
Need to buy on any dips, to increase my Equities Allocation to about 35% to 40%.

Good move, boss....

I intend to up my HSI allocation.

Side track:
Boss W, can i ask u , which website is best to monitor HKSE stocks?

[winston]

Hi Chinaman,

You can use the following:-

http://www.aastocks.com/en/Default.aspx
http://www.hkex.com.hk/eng/invest/stock ... 602_e.html

Take care,
Winston

[Chinaman]

Hi Chinaman,

You can use the following:-

http://www.aastocks.com/en/Default.aspx
http://www.hkex.com.hk/eng/invest/stock ... 602_e.html

Take care,
Winston

Thanks boss.....
of late my HSI stocks most of them under-water.
think now right time to re-balance , looking/ searching / eying /..any good stocks???

[tonylim]

Any Good stocks in HKSE to watch ? Thanks.
So far I only hold HSBC and CKH.