Asset Allocation 01 (Jun 09 - Jul 13)

[winston]

1) But I tot i am seeing more of the smaller funds jumped the gun by investing in small- cap stocks and crossing 5% disclosure as a result.
2) some of the small caps even doubled with retail investors pumping up the price..

1) Some smaller funds purposely keep their exposure to <5% becuz they dont want you to know that they are invested in the stock. But when they want to get out, they then let you know that they have a position. If they continue to buy over the next few months, then it's a good sign. if not, I would be a bit careful.

Of course, if you are a long term investor and know the company very well, then it's not necessary to be distracted by such Noise ..

2) Retail Investors dont have the power to pump up the prices. It's the BBs that can pump up the price ..

3) Again, "Long Funds" have to stay invested no matter how euphoric the market. So where would they be investing now ?

[Aspellian]

1) But I tot i am seeing more of the smaller funds jumped the gun by investing in small- cap stocks and crossing 5% disclosure as a result.
2) some of the small caps even doubled with retail investors pumping up the price..

1) Some smaller funds purposely keep their exposure to <5% becuz they dont want you to know that they are invested in the stock. But when they want to get out, they then let you know that they have a position. If they continue to buy over the next few months, then it's a good sign. if not, I would be a bit careful.

Of course, if you are a long term investor and know the company very well, then it's not necessary to be distracted by such Noise ..

Wow - thanks Winston!! I seriously never thought of this!!

PS: have you ever seriously thought of writing a book and share your wealth of experience - i will love to get an autographed copy!

[winston]

PS: have you ever seriously thought of writing a book and share your wealth of experience - i will love to get an autographed copy!

Ha Ha .. be careful of false prophets !

[Aspellian]

PS: have you ever seriously thought of writing a book and share your wealth of experience - i will love to get an autographed copy!

Ha Ha .. be careful of false prophets !

i can read your book but i dun have to believe your preaching!! hahaha!!

[winston]

TOL:-

Some Funds have 70% of their Portfolio in "Strategic Assets". This is the Core Investment of the Portfolio. They dont trade this portion that frequently.

The remaining 30% are in "Tactical Assets". These 30% is used for trading special situations.

So what are your "Strategic Assets" and your "Tactical Assets" ?

[b0rderc0llie]

I've a similar allocation.

My strategic assets are stocks in companies which I would like a stake in, and futures position in commodities.

My tactical assets are futures and options positions on indices and commodities. I use them to play around and to experiment with my ideas. Also, for some positions, half of it would be strategic as described above, and the other half would be "actively" traded.

How about yours?

[kennynah]

just recently...i am almost all in "strategic" play in stocks.... if by that, it means, a longer term investment....

[lithium]

Hi all, I'm new in this forum. This is my first post!

How do you allocate to "strategic" and "tactical" portfolio? Can a same stock be allocated to both portfolio? what criteria you use separate the two?

Or

"strategic" portfolio were pick using fundamental analysis, some stocks or commodities which have been beaten down badly, you see mostly bad news on newspaper about these stocks and commodities, but fundamentally there look cheap. So you buy them and keep for longer term, wait for these bad news turn to good news?

and "tactical" portfolio were pick using technical analysis? looking for breakouts? these are the stocks and commodities that are looking good in newspaper and analyst reports, So you trade them with stop loss?

[winston]

Hi Lithium,

Welcome to the forum ! We hope to see more postings from you. You can use the "Active Topics" button to follow the latest discussions.

I think there are studies that shows that the best performing Equities portfolios are:-
1) 70% Strategic and
2) 30% Tactical

Strategic are long term holdings. Tactical are to capitalize on any short term events.

However, we would still need to get the Asset Allocation correct in the first place ie. how much to allocate to Equities, Bonds, Cash, Properties, Commodities, Leveraged Instruments ( Warrants, Options, Futures) and those that go in the opposite direction eg. Inverse ETFs, Short-Selling, Bear Warrants, Put Options etc

May your stay here in the forum be a profitable and enjoyable one !

Take care,
Winston

[lithium]

Thanks for the warm welcome winston!