Asset Allocation 01 (Jun 09 - Jul 13)

[kennynah]

bro C :

got sound but no picture yet.. hahaha... my first post was at 636am today....

asset allocation... u said it...never ending debate on this subject one...hahaha... i think, to each his own...ai song and meets personal financial needs..then ay sai liao....

becos, different people different requirements mah... let say very old folks...i think should not hiong heavy at stock market... bcos kana one kuat kuat downswing ... maybe no time to wait for price recovery...already sell egg liao... so better buy properties... can pass on as a legacy also...

young man... perhaps should do the opposite...

[Chinaman]

bro C :

... my first post was at 636am today......

Bro K, u no working huh......full time trader???

i yesterday quarrel w my boss, tot of resigning my the other half scolded me...stay home for what, everyday glue at monitor dun make money, waste your energy somemore, hehe.

[kennynah]

boss C : i woke up to go toilet.... so decided to post at that hour...

[winston]

What is Asset? To me basically are:
Property, Stock, Bond, Cash and Insurance.

Ha Ha ... got one more ie. Commodities

[Chinaman]

Oh yes, this 1 loss until my face green green.

In mid 08, blindly follow that jimmy roger shouting commodity choinging, when thai rice up aro 40%.

Dip in 10k in commoditity fund now still underwater by 45%....hmms, those fund feesssssss...pay until your nose bleeding, swear no-more fund for me anymore....but the other 's' fun still needed...haha

[millionairemind]

Oh yes, this 1 loss until my face green green.

In mid 08, blindly follow that jimmy roger shouting commodity choinging, when thai rice up aro 40%.

Dip in 10k in commoditity fund now still underwater by 45%....hmms, those fund feesssssss...pay until your nose bleeding, swear no-more fund for me anymore....but the other 's' fun still needed...haha

Sorry to hear about your loss...

Never follow these gurus. They can lose 50% of their fortune and still live like a billionaire...

[kennynah]

those "goondus" dont shout loud loud calling a buy other than for their own personal reasons.... they are probably unloading to the public... in especially this jim rogers... a big snake....no free lunch one ...

people are beginning to realize how GS has been milking their clients by taking opposite to their own analysts recommendations... it's a dirty business...

[winston]

Is it Too Early for the "End-of-the-World Portfolio?" by Alexander Green

First one friend called. Then another. And then yet another.

Now their friends are calling me, too, asking about my "End-of-the-World Portfolio."

So I've decided to just go ahead and tell everyone about it.

All the friends who called - and their friends, too - are well-educated businessmen. They're convinced that not only the United States government, but also the governments of Europe, Britain and Japan have simply lost their tether.

We've all seen deficit spending before. It's been a problem for decades. But nothing like this...

Putting the Eye-Popping Numbers into Perspective

The unfunded liabilities for Social Security, Medicare and Medicaid alone now top $108 trillion.

Of course, that number is too large to mean anything to most of us. It's only when you bring it into context that it becomes alarming.

The $108 trillion is approximately $815,000 per U.S. taxpayer. (And this is just the projected shortfall in Social Security, Medicare and Medicaid. It has nothing to do with the rest of the federal debt, which tops $13 trillion.)

Entitlement spending in other parts of the world is an even bigger problem. And the federal deficits are even more gargantuan. In Japan, for example, debt as a percentage of GDP will hit 200% this year.

Many of my friends look at the fiscal problems in Greece - that necessitated a $1 trillion bailout from the European Union - as just a warning shot across the bow. They're concerned that things are only just beginning to unravel and will get considerably worse.

Are they right? Only time will tell. But here's what they keep telling me...

Are You At the Mercy of Wasteful Governments?

"Alex, I busted my hump to earn this money. I've paid taxes on it. I've saved it instead of spending it. I'm not going down with the ship if those boneheads in Washington spend us into oblivion. How do I protect myself?"

Let me begin by saying that I've listened to apocalyptic economic forecasts for decades now. Putting all your money in gold bullion, freeze-dried food and shotgun shells hasn't been a particularly auspicious strategy.

The difference here is that these folks aren't gloom-and-doomers who have droned the same message for over 30 years. They are ordinarily optimistic folks who think Western governments are driving the world economy down the road to ruin.

The knock against democracy in Greece and Rome a few thousand years ago was that once the electorate realized they could use their representatives to loot the Treasury, all would be lost. Lately, that remark is looking prescient.

As one friend summed it up: "Look, Alex, I don't care if I'm wrong about Armageddon and my returns turn out to be lower than what they might have been. Just tell me what to do so I can hang on to what I've got and maybe match or beat inflation by a little bit."

With that modest goal in mind, here is my suggestion if you want to hunker down for the end of the world - a posture that admittedly may be premature.

How to Allocate Your Assets in the "End-of-the-World Portfolio"

~ Put 40% of your liquid portfolio in a laddered portfolio of AAA-insured, tax-free bonds. (Be sure to buy state-specific bonds if you're in a high-tax state.)

~ Put 40% in a laddered portfolio of inflation-adjusted Treasuries, also AAA-rated. (For tax reasons, these are best owned in your retirement account.) This is your protection against inflation, as Uncle Sam might opt to spend us out of a tight spot with interest rates already near zero.


Investment U - What's It Mean?

Laddering means varying your portfolio between short-, medium- and long-term bonds. This is your protection against deflation and the virtual certainty of higher taxes.

~ Put the remaining 20% in defensive, blue-chip, dividend-paying stocks. I'm referring to food companies, healthcare companies, utilities, defense contractors, gold mining companies and the like. This should provide some growth and income.

Why include stocks at all? Because 200 years of history shows that an 80/20 split between stocks and bonds is actually less risky than a 100% bond portfolio.

On a personal note, I would not invest my own money this way. (At least not yet.) I'm not calling for the end of the world.

But my friends seem grateful just to have a clear-cut plan. One of them even concedes that it's not his "End-of-the-World Portfolio": "I tell people it's my "Cup-Your-Groin Portfolio."

I suppose it is. I only hope our elected misrepresentatives get the message before we all need one.


Source: Investment U

[winston]

Time to review Asset Allocation in times of volatility:-

Equities ( Excluding Gold Shares ): 25%
Gold Coins & Shares: 8%
Inverse ETF: 1%
Rest in Cash: SGD, AUD, EUR, HKD, USD

Looks quite ok if there's any turbulence
Objective: to increase allocation to Equities whenever the market dips

[memphisb]

I have liquidated 50 % of my holdings since last 2 weeks and taken profit.

now 50 % cash and 50 % stks and waiting. Direction is just not too clear on the whole.