Jul 14, 2013

Call me Pessimistic

So far for the first half year has been fruitful for me. SG Stock Investment XIRR YTD = 11.x%. Coincidentally is also the average score for the past 7-10 years of SG stock investment performance. The score includes fixed returns.

Many people will be happy but not me. Why ?

If you are to see below chart, only 39% has been invested. Which mean Networth XIRR will be lower. Further reduce if i included pensions into the count. To me that's quite a significant loss of INCOME if we are financially awake !

While I need to continuously look for way to fix that, i need to be mindful that due diligence is done to make sure there is Quality. For the past few months i have difficulty raising the threshold due to market dynamics. Obviously the best time to do this will be to wait for Regional/Global Financial Crisis like situations some may says. Well is easier to say than done.

I like to also add caution above that. If the wait is 5 years, that's roughly 25% lost returns assuming 5% average return uncompounded.

Also the 2008 GFC Crisis maybe once in a lifetime event to reach 50% and that's provided you catch the bottom and sold on the top which are highly unlikely to happen.

Another possibility is to have another side stream income. I will not close on that possibility completely but it won't be done in a big way.

Sick for the past 2 days while on holiday back here. Is a long time since i had one.
Many thanks to God for my health ! Nothing is more important than that. By the way is also time i start to do some serious spending. Cheers !

14th July 2013

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