Cory Diary : What does XIRR 6.8% Annualized return looks like ?

When we have $10,000 and annual returns of like 5%, it seems to take forever to achieve financial freedom. However Freedom is about going through the learning experiences. The anxiety of market dynamics. The building up of portfolio. The compounding of what one has.

Here's a chart of 6.8% Annualized growths mean in green.

Not going to lie is easy but is not improbable either.

Talking to myself mode. Continue to stay nimble, invest what I can sleep on, cut loss, study financial report, use a bit of TA, don't go on margin, reasonable margin of safety, logical diversification and don't gamble in rubbish stocks. Stock tips from forums, blogs, analysts, friends and relatives are just a dream for me to dream.


Cory
20170610

Cory Diary : Asset Allocation 20170604

My heart screaming to write something today and decided to do a clean up / review my asset allocation.

Here's the pic.

From the chart, if we are to total up MMF and Deposits, that 26%. MMF is Money Market Fund ready for investment. If I am to surrender my Insurance, that will boost to 31% which matches my Equity allocation. However I am unlikely to do that. Nevertheless, this is the War Chest. At 26%, is still a little high. I need to lower Deposits allocation to 20% but may need to reserve this bullet.

Bonds and Preference 13% provides a low yield on the whole. I maybe able to squeeze something for better later but for now it stays and provide the stability to the assets.

Overall Investment allocation I would consider Equity, Property and Bonds/Pref which totaled 53%.
If some may remembered ( Link ), my Cash/FD was at 34% and Equity 22% about 4 months ago. Current allocation is way better and met way above my target and allow me to capture this year upside nicely.

The first 5 months have been great for equity holders mostly. Will Portfolio continues to grow till 2017 ends ? I believe there is still a little leg to go. Will have to stay nimble and watch for major market turning if any. Touch wood.


Cory
20170406

Cory Diary : The Law of Growth - Population

Singapore Population growth has seen some increase prior to the last election. Since then we have seen a more gradual growth. I would say outcome of the last election result in securing the 70% votes.

I personally have been a proponent of quality of life rather than GDP growth. But is when the growth starts to slow down and stock market of local dependent economy starts to pinch that we start to feel the impact of it because one of the most important metric to watch for growth is Population Growth.

Let's face it. Singaporeans are not replacing themselves. If we are not changing, it will be 20 years of lost growth like what we are seeing in Japan. For this, who suffers the most ? The future generations that has to support the growing grey population. Japan is a country we need to carefully understand and study.

Japan Population

While I have not been in the country for most of the time, there has been constant barrage on the foreign influx policies. The constant breakdown of the MRT is not helping. The move to privatize is the right one. And I miss this one. More HDBs are needed to absorb the population increase. More Hospitals too. All this takes time to build up.

Same time interestingly, we have reduction in schools which means theoretically fewer teachers are needed. Again this is the outcome of lowered population growth forecast with gradual increase. A good example of mid class job losses and the dependent/supporting industry employment and income that comes with it such as rentals, basic consumption, transportation, telco, flights etc.

I specifically reserve the last segment to those that still has heartburn on the needs of population increase. ( below charts)

United States Population

Even mighty Americans do this too despite their innovation and economic scale and success. Maybe that's one key reason why we seen DJIA hitting 20K. Sorry Trump for taking some of your credit !


Cory
20170528