Asset Allocation 01 (Jun 09 - Jul 13)

Re: Asset Allocation

Postby winston » Sat Sep 08, 2012 9:12 am

If you are unsure of what to do, then the right course of action is to do nothing ...

Current Allocation:-

Equities: 30% ( Dividend Stocks 13% )
AUD Cash: 31%
Gold & Gold Stocks: 13%
MYR Cash: 8%
Puts & Inverse ETFs: 0%
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
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Re: Asset Allocation

Postby winston » Thu Sep 20, 2012 8:40 pm

When it's peaceful, prepare for war ...

Current Allocation:-

Equities: Reduced to 25% from 30% ( Dividend Stocks 13% )
AUD Cash: 31%
Gold & Gold Stocks: Reduced to 12% from 13%
MYR Cash: 8%
Puts & Inverse ETFs: 0%
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
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Re: Asset Allocation

Postby winston » Wed Oct 03, 2012 7:19 am

The Question on Everyone’s Mind by Joshua M Brown

In the 3rd quarter of 2012, the broad US stock market (S&P 500) was up 5.8%. The US bond market, as measured by the BarCap Aggregate Bond Treasury Total Return Index, was up a tenth of that, with a gain of only .57% for the quarter.

This raises a huge question for portfolio managers and the ways in which they'll answer it will vary considerably.

Most of the money in the stock market is institutional - by which I mean it is retail money that is managed by institutions. It is guarded, stewarded and invested by professionals with varying degrees of rules-based discipline and always with an eye on the calendar.

Today is the beginning of Q4 and almost everyone who manages money professionally is asking themselves the same thing - should we rebalance? I'll explain why.

http://www.thereformedbroker.com/2012/1 ... ones-mind/
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
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Re: Asset Allocation

Postby winston » Mon Oct 08, 2012 7:15 am

How to Hedge Against Greek Contagion by Alexander Green

Constructing An “End-of-the-World Portfolio”

If you’re worried about such an eventuality, what should you do?

First off, don’t make immediate, wholesale changes to your investments. My goal is not to scare the pants off you, but to make you consider the unthinkable.

I also want to detail one way you could hedge against it with, for instance, an “End-of-the-World Portfolio,” which I’ve written about here before.

Here’s how it could be structured:


• 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.)

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


• 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 Central Banks might opt to spend us out of a crisis and argue that “temporary” hyperinflation is preferable to national bankruptcy.

• Put 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. And, remember, you need to hedge for prosperity, as well.

Bear in mind, I’m not calling for the end of the world… yet. I’m only pointing out a possibility, however remote. What the odds are, no one knows.

But as investment legend Peter Lynch used to say, “If you’re gonna panic, do it early.”

http://www.investmentu.com/2012/October ... agion.html
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Re: Asset Allocation

Postby winston » Sun Oct 14, 2012 7:55 am

Current Allocation

Equities: Reduced to 21% from 25% ( Dividend Stocks reduced to 11% from 13% )
AUD Cash: Reduced to 23% from 31%
Gold & Gold Stocks: Reduced to 9% from 12%
MYR Cash: Increased to 12% from 8%
Puts & Inverse ETFs: 0%
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
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Re: Asset Allocation

Postby winston » Thu Oct 18, 2012 5:06 am

Risk Is Back as Fund Managers Turn Bullish on Equities By: Ansuya Harjani

While bonds have been the asset class of choice this year, equities are quickly gaining favor among global asset managers, as central banks pump liquidity into the financial system and investors grow less fearful of the euro zone debt crisis.

A monthly survey by Bank of America/Merrill Lynch showed 24 percent of fund managers are overweight equities — the highest in six months — rising from 15 percent in September. The survey of 200 managers, who oversee a combined $561 billion, was conducted over Oct. 5-11.

European and emerging market equities have been the biggest beneficiaries of the shift in risk appetite, the survey showed. The percentage of participants bullish on emerging markets, for example, rose to 32 percent in October from 19 percent in the previous month — the biggest monthly rise in eight months.

The improvement in investor sentiment has been reflected in the MSCI Emerging Markets Index and the FTS Eurofirst 300 Index, which have risen 8.8 percent and 6.7 percent, respectively, over the last three months. (Read More: Is It Too Late to Buy European Stocks?)

“Asian equities will start to perform better as some people start taking profits out of the U.S. I’m interested in China and India, those markets have underperformed, but they have started to breakout to the upside and that’s an indicator that the smart money is moving in,” Bibby said.

“When we look at momentum — or which markets are rising the fastest — Asia’s picking up steam,” he added.

When asked how more exposure to riskier assets would be funded, the majority of respondents or 37 percent, said they would sell government bonds to do so. Fund managers, however, were much less willing to let go of their corporate bond holdings to buy up higher beta plays, according to the survey.

Meantime, optimism around U.S. equities fell for the fourth straight month, with just 10 percent of investment managers overweight the country’s stocks, compared to 13 percent in September.

http://www.cnbc.com/id/49444076
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Re: Asset Allocation

Postby winston » Mon Nov 12, 2012 8:54 pm

Markets getting volatile, so it's time to check the allocations from Oct. 14, 2012:-

Equities: Increased to 28% from 21% ( Dividend Stocks increased to 13% from 11% )
AUD Cash: 24%
Gold & Gold Stocks: 9%
MYR Cash: 11%
Puts & Inverse ETFs: 0%
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
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Re: Asset Allocation

Postby Chinaman » Mon Nov 12, 2012 10:37 pm

Hmms, look like can consider buying some Dividend stocks...
well, stocks that never pay dividend usually i never touch.
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Re: Asset Allocation

Postby tonylim » Mon Nov 12, 2012 11:07 pm

Hi Chinaman,
Is cluster bungalow good choice of investment now ?
查颜观色,静观其变,审时度世.
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Re: Asset Allocation

Postby kennynah » Mon Nov 12, 2012 11:15 pm

Chinaman wrote:Hmms, look like can consider buying some Dividend stocks...
well, stocks that never pay dividend usually i never touch.


wise man 8-)
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