Saturday, 19 September 2015

Investment Reflection: Asset Allocation

With recent corrections, I have been actively looking at stock market. I have sharpened my finance skill to read financial data. In order to make sound investment, I have also made an effort to understand more of the various businesses and their future outlooks. I would say I have become a more technical and proficient investor during the process. At the same time, I know much better what the world is happening.



This is not all. I still have plenty to learn. However, I feel this is not healthy, given my already fully occupied schedule. I find myself "multi-tasking" to unleash my financial potential to the maximum. I do it before and after my family sleeping hours, while travelling to/fro work and pockets of time when I am alone. For example, while in toilet (don't think you want to know so much details). So, I decided it is time to "discipline" myself.

I am only active in stock market when it is tanked. I don't have problem when the stock market is doing extremely well. Moving forward, I decided to only spend 1 hour daily to read news and looking at stock market during market turmoil. I will do it early morning, during lunch break from work and while travelling home.

Asset Allocation
Given the recent correction at about 20% from the peak, I am supposed to be 40% invested in equity. You can read my asset allocation here. Currently, I am 20% invested and I am only looking to be 30% invested the most now. Yes, you are right, I did not follow my plan exactly. This is because my asset allocation is a rough estimate. This is also why I asked you not to follow any "star" blogger (of course not talking about me) closely on your investment decision. Situations changed quickly, faster than any star blogger can manage to update their new post. Most probably, they will not update 100% of their trades. Not to mention, you may not be able to follow every minute on what the star blogger says, even if they are able to share by minute.

I would like to update my asset allocation a little:

Using STI ETF as reference
Cash
Stock (capped at)
≥ 5 years historical high
90%
10%
10% dip from highest
85%
15%
15% dip from highest
80%
20%
20% dip
70%
30%
30%
50%
50%
40%
30%
70%
50%
20%
80%
60%
10%
90%

My watch list: STI ETF ($2.8), CapitaLand Commercial Trust ($1.295 & $1.17), AIMS AMP Capital Industrial REIT ($1.22), Keppel Corporation ($6.5 & $5.85), Starhub ($3), local banks. May add 1 or 2 more to the list soon. You may notice some prices seem too low for now, but it is just my asset allocation strategy. Please don't take reference from mine as I have other financial instruments to invest. This is more for my personal tracking.

My family and I are going for a vacation to Taiwan for 9 days. I will not be able to reply any message or look at the stock market (I hope). See you!

3 comments:

  1. hey FD, I m gg to Taiwan in less than 1 month time also. enjoy...

    btw wat is ur STI ref pt? 3k?

    ReplyDelete
    Replies
    1. Hi Rolf

      As my reference point is from STI recent peak, it is about 3500 this year. The beauty of this asset allocation is that reference point shift based on "recent" 1-5 years peak and market sentiments. I will have to inject my "investor's sense" to make judgements and tweet here and there a little. In general sense, it should not differ too much. For example, I felt current correction is not worth investing 40% and think 20-30% is the magic figure, so be it.

      Enjoy your trip! bringing your family?

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    2. 二人世界! hahaha.....

      Hopefully I can stop looking at STI when in Taiwan.

      Enjoy your trip!

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