In the year 2020, almost anything that you buy in any asset class will make you some money. Going into the year 2021, it is going to be a tough year. As I mentioned many times, portfolios will go through their baptism of fire. Perhaps it is the month of May. As the saying goes, sell in May and go away? It is going to be a trying year. This year, we will most likely see portfolios taking a hit. This is the time to put all those concepts to use.
Equity markets are pricing in the real leverage, over trading and over optimism with inflation risks and other factors to concerning investors. What are the other reasons? Frankly no one will know. Risky assets are always risky and they reward you with the rewards if you are spot on.
It is always hindsight
No one has any crystal ball so stop looking for gurus. As emotional as many people out there, I see green with envy for others who make the one hit wonder and 1000x their portfolio. The truth is, I doubt that I will even go into that kind of trade. However, it doesn’t stop me from trying stuff out. You never know which one might hit the jackpot.
Cryptocurrency – The way?
Dreaming of 100 BTC at USD 10? If it ever gets there again, will you buy a 100 of those? This is a question only every individual can answer on their own. To put things to perspective, d not look at what others have. Instead, look at your own portfolio and see what make sense of it. What does it serve and what is your target?
There are plenty of blogs out there who have different styles and objective. Their aim is not yours. We are all unique in nature. Learning to cope with drawdowns are key to the investment journey. Don’t panic, keep calm and keep buying. Just continue to do what you are doing consistently, results will show for itself when the time comes.
This is not a sponsored post. This is purely my own opinion. If you like what you are seeing, do remember to check they out and do your diligence. There is no one size fits all investment strategy.
The season of Christmas is coming. Many people are still trying to get in the mood of celebrating Christmas and it is a nice feeling to do so. In doing so, have anyone wondered if anyone out there needs a helping hug. Other than those meaningless gift exchanges that generates more dumpster waste and creating a new cycle of recycling habits, perhaps it is time to sit down and think about what Christmas is all about.
A Giving Christmas? Really?
All of us want to find a reason to celebrate. In doing so, indirectly I’ve seen people using Christmas for meaningless boasts. At the same time, I have also encountered many people who dread the Christmas habits of gifting. Maybe I am skeptical but I refuse to budge over these futile attempts to gift and receive gifts. Advent is a time of giving but not giving to people who already have enough.
The Exercise or the Process
Not to mention that it burns a tiny hole in your pocket, the efforts to search, deliver, wrap and store these presents seem to have slowly lost its meaning. Looking back at the spiritual aspect of Christmas, it is a time to celebrate but humbly. Helping others along the way seem to be well forgotten. Yeah, I hear people saying tax season is coming so it is time to donate but really, is that the only driver of donation? The 2.5x that caps at 2.5k per year? Our conscience are better than that and I believe the beings still have hope. Despite all that inner angst and money worries and more talk about money, giving shall prevail over all during this season.
Tab for a cause
Tab for a cause is a simple tool that you can add on via your chrome browser.
You can raise money for charity with every tab you open in Chrome just by surfing the web. I was introduced to this by a friend just one week back.
Each time you open a tab, you will be greeted with an incredible new tab page filled with custom widgets, pictures, and a couple banner ads. Tab for a cause collect ad revenue from the page and use it to donate to the cause you are supporting and like minded people have raised over $1M for charity just by surfing the web.Anyone can join in by adding that chrome extension to their own browser device.
I wouldn’t say this is the most friendly user app or extension but if it is for a good cause. Why not for that effort. For every successful link that I refer, I will get additional 350 hearts that goes to the charity organisation that I choose to give to. There is no benefit on my end. I hope that if you do have any sources of referral, you can do the same to pass it on and get it going.
I do not own or get any benefits from this. In this digital age, if raising funds need to be done this way – It is worth every effort to do so. Please spread that on if you can. After all, we have to live life meaningfully whether we are subject to any hardship or luxury. We start out as equal so there shouldn’t be any class differentiation.
More often than not, I read articles and comments and many people ask about if it is the time to invest now. Markets are too high…What asset class to invest into and should I invest now? I only have $100, $500, $1000 (It doesn’t matter how much you have. It matters to start early and depending on which stage you are at. It might be better for you to start an emergency fund first before you invest)
Just this morning, I was listening to Kiss 92 radio channel and I heard that there was a miracle. A fan fell down and went into coma for 23 days. While he was a in a coma, the morning show DJs started to call and talk to him. While they wished for a miracle, they kept it real and thought that it might not happen. This then sparked a little thought – something we all know but fail to execute.
The story is such a good one that it kind of send me teary eyed for a short while. While we know that miracles do happen, we also know that miracles don’t happen all the time. However, it is important to keep believing that thing will happen the way you want it to no matter how far it seems. Never say never. Be practical but sometimes there are no explanations.
When is it really time?
You will never know when is the time you may lose your loved ones so treat them well and shower the love. Similar to investing, we will never have the crystal ball that tells us the future. If you do have one, I think there isn’t a need to seek financial independence anymore. No matter how accurate, lucky or correct one can analyse – there are no shortcuts. All things take time.
Spend time not focus purely just on money
Spending time on your loved ones is more important than making money. Money as what I alway advocate accelerate the process to many other things. Spending that time not also allows one to connect socially with family as well as reconnect with the young and old. Crossing generations also gives you fresh perspectives and new ideas. Don’t write them off.
Investing takes up a lot of brain cells if you are always exploring for new ideas. These perceptions will provide options and aide in that journey.
Family is family
Whatever your situation is family is always family. What you represent eventually will be translated down to the next generation. There isn’t a guide or way to do it but everyone is a parent for the first time so cut some slack on yours. After all, they were in different times as we did today. Family time provides connectivity that helps one mentally while providing that support. Some may call it safety nets in the finance world but personally I prefer to call that emotional support group. Perhaps friends might be as close to family but everyone’s comfort level is different.
With a section of the mental support covered, naturally one’s focus will be freed of distraction. However, there should always be a balance.
Is it the best time to invest now?
It is hard to say all of that with so many conflicting articles that talk about an all time high and that an impending correction is coming soon. That is all technical and feel. There are no scientific rules as to why markets goes higher or lower. Only interest rates and bond prices are inversely proportional. Other than that, there are no fixed formulas and no one can single handedly control or manipulate the markets.
As always, you can choose to put in some during the initial phase and stagger the investment on a regular basis. This is what most people know as dollar cost averaging.
The other way is really to split the amount that you wish to invest into 3 or 5 parts. Every time the market drops, just diligently put some in.
What if the markets were to increase by another 5% or 10% and you are not invested. That would mean that you will always be missing the market rallies. A medium and long term view of the market will definitely help in the long run.
The contradiction will always be there. When you are young, your commitments are lesser but the disposable income is lesser too. Moving into middle age, your commitments increase but your disposable income depends on what you need to spend on. When you are slightly older, your commitments decrease but your risk level should not be like 20 years ago.
The whole idea is to really to invest early and invest regularly. A miracle happened for someone today but that doesn’t mean it happens to everyone. Some people missed their chance or opportunity and that would have been too late.
This is purely my own opinion after using their service and/or products. If you like what you are seeing, do remember to check they out and do your diligence. There is no one size fits all investment strategy.
Life is very strange. It can be tough for some, easy for others. Sometimes smooth sailing while some have to ride heavy waves for extended period of time. Covid-19 has not been great to many people and companies globally. This also pretty much sums up the cashflow situation most companies are when the economy shuts down for months. The typical companies who are in debt are just simply living on future money, future growth and future prospects. Never touch those companies.
Life has a lot uncertainties but these should not be the decisions you make in your life. Life will also give you a fair share of knocks but these knocks when looking back ensures that these formulate and set you up for the future. It is actually kind if you look back in that way however at the very moment that things happen, it isn’t easy to take.
Personally, I do understand how it feels and it is totally fine to feel dejected, upset and even cry about it. Immerse into the whole dejection and slump but don’t drag that out for too long. It is equally important to pick up and build the self confidence from scratch.
Your plans will change. Your ideas will fail and things will not fall in the way you want it to be. Truth be told, that is reality. The world starts dropping on you and the worries start formulating in a strange way. Whatever the situation is – It is a setback and you need time to recover. Be it one month, one year for 2 years – that is a process that everyone have to go through. It strengthens your resolve and makes your mind work so much harder.
The first step is the dismay and anger. Get it through thoroughly and do not withhold. The next step is actually crucial – your own support group. Your family, your parents, your friends, your spouse, your extended family. This is also the time when you will start to realise who you can depend on. Some friendships will be lost while new ones will be developed. The support group is important to keep the sanity going.
Step number 3 is the recovery part and at times, mood will change from step 1 to 3 but that is not a step back but a step forward because there is a plan to go ahead. Regardless you like it or not, you will have to accept it and move ahead. The important thing is to push ahead. At this point in time, confidence can be at a all time low and you will definitely know what you need and what you don’t need.
Many times, when you feel that the world has fallen right in front of you. You are not alone and it happens to many people. No one likes to share to tell you the bad things. After all, everyone really just tell you the positive and optimistic stuffs. Social norms say you can’t say but I beg to differ on that view. I’ll say, it is better to speak your mind than keep it under a smile or silence.
I can’t say that this is a good feeling but it is indeed a humbling experience. It can be a time to rethink and/or reevaluate.
It will not happen
Most often, things happen at the most unexpected moments. I often hear people say things like this will not happen. These companies are too big to fail. These are the monopolies or even “My plan is …..” Well, I would say that who knew Covid will actually be a global impact to our livelihoods. The thing is really never say never. Humans are forgetful but these setbacks brings you back to the ground. When you struggle to find a solution, the struggle makes everyone resilient. We are only resilient when you experience hardship.
What is impacting is that being a majority middle-class, we are all sandwiched-class. Being financially savvy brings your step out of the sandwich class. A close friend of mine once said that your best gift to your child is getting your own retirement plan ready. I reflected on that statement multiple times and it is true to a certain extent:
a. It is intangible and your child will never be able to understand it until their later stages of life
b. Being financially free and getting ready for retirement gives less stress on your kids as compared to now when you are sandwiched between the seniors and your young ones.
c. By getting ready for retirement, you will eventually also prepare for your child’s education. This is reality and it is real. Imagine contribution CPF to your child’s account and compounding at an early age. This kick start their beginning where most of us either started too late or had to little to begin with.
The purpose of this is really to gain some awareness about personal finance and how important it is over the longer term. You have to know what you have or what you don’t in order to cover what you are lacking.
As each and everyone of us are different, if you are in difficult times. Don’t worry, it will pass and something better will come by. You may or may not see it now but it will be better as time goes by. Health is important so take care of your own well-being and be mentally stronger over time.
Sustain, maintain and grow your wealth. There is no rush as baby steps are the ones which brings you confidence. Each time, you fall as a kid, you just got to get back up. Similar with your own investments (Be it personal investments or monetary investments) every step of the way is an experience. No one said that it was easy. Tough knocks makes you a better person and let you make better future choices.
If you like what you are seeing, do remember to check they out and do your diligence. There is no one size fits all investment strategy.
Able to write and share is my main objective is to create a community and blogging what I want to do. Being mentally well and put down content is something I always wanted to do. Trying out new things will definitely bring one’s horizon to a different level.
Humans are interesting. Technically and Fundamentally. There has been a lot of discussion around behavioural finance but I tend to see that as behavioural psychology. For the human mind, there is a sense/emotion that triggers a good feel or bad feel and that triggers almost every decision we make. I’m no exception but it very strange. How does this affect us? I believe it affect our decision to buy a company, invest a counter, sell a counter, buy a long-term product or even purchase a new gadget even though we don’t need one.
Needs versus Wants
The most old school human nature is the needs and wants. I kind of feel that this is forgotten after being used so extensively for so long. We are forgetful creatures so we have to be constantly reminded into the basics. As defined:
Needs – They are necessities and compulsory. These should be our main focus when living life to the greatest. As I have always said, there has to be a balance as well. Sometimes, it is good to take a step back and don’t follow the sense or what seem logical to be doing. It takes routine out of norm momentarily.
Wants – They are good to have and not mandatory. However, they are stuffs that has an alluring sense to being able to own it. It does not happen all the time but these are mostly things we want to own.
More often than not, we make our goals in order to achieve our wants. Those stuff are not sustainable. They make one feel good or even give a great sense of achievement.
This is probably an ingrained set of behaviour that has always been affecting human being. If we win, we win together and if we lose, we all lose together so it isn’t that bad. But com’on, that isn’t really correct technically. Herd doesn’t give you immunity to anything. No one gains from the same damaging impact (If the end result is negative) but on the flip side the herd tends to celebrate when there is a success during the end goal.
It also doesn’t mean that by following analysts call, it is always the right call. How much of those really do impact your decision. I would like to think that most people decide to delegate the job of choosing a counter to the “experts”. However, it just means to always do your due diligence. If it matters to someone, you will take that extra effort to do so.
These days the market doesn’t just pick up everything from one big investor call. Geopolitical tensions and psychology plays a huge part in everything as well. The talk about the famous words Warren Buffett once said that it is wise for investors to be “fearful when others are greedy, and greedy when others are fearful.” This is a little overused but it makes absolute sense. However, this need to be taken into context as well. Is this the typical trader or the long term portfolio building strategy? We can’t typically pull a rabbit out of the hat and apply this to every scenario.
To date, I still find too many irrelevant quotes applied to conditions that are simply not apt for the scenarios. Even when the scenario seems apt, it may not be because of the situation every individual is in. Which is why, time and again I emphasize that there is no one size fits all strategy but building and learning from each other.
The $1 million investable asset versus the $100k versus the $10k versus the $0 can really learn from one another. It is never too late to do so but by not doing anything, that’s not doing yourself the favour to plan ahead.
If you like what you are seeing, do remember to check they out and do your diligence. There is no one size fits all investment strategy.
Let me know what kind of articles resonates with you and what you would like to see or hear. I’ll try to make those more frequently. After all, the main objective is to create a community of sharing and learning from each other. The end goal is to be financially free.
Value is a very interesting concept. In the world of investing and valuation of companies, there is no one size fit of the valuation of a company. This also create an inefficiency into the market where there are enough buyers sellers to take in price and also to sell out. This is also a great definition to split up what buyers and sellers view certain companies or certain things. This is extremely interesting for me – Over the years there is no doubt brands bring out a certain stature in beings. (Beings as in humans) In Singapore – The last 10 years have seen a big bunch of folks growing with affluent wealth significantly.
Let me just put things into perspective – many might know what a KIA Picanto is. Just about 7-8 years ago, COE prices were sky rocketing to above S$80k. The brand new Picanto actually cost cost to a S$100k here and I actually do know some people who own these. With the same S$100k, you can actually get a Toyota Vios or a car with a smaller engine such as the Toyota Yaris (Which is a sportier hatchback). To some, owning a car is just not feasible or it just doesn’t make sense. This is where things get interesting. For S$120k, you can almost get into the entry level continental cars such as Audi, Skoda and Volkswagen. Driving an Audi versus a KIA – what perceived value do you now have?
Before beginning on the concept, i need to have a disclaimer that I am not a qualified psychologist nor am I a specialist. I just find that stuff like Feng Shui, Human Psychology, Behaviours and Ideas are built on a single platform. This platform is known as Common Sense. While it is easy to understand, many may not practically use or realise until much later.
For me, I think that it is necessary to always stay an open mind. There isn’t really such a thing as a one man show, it is always a team effort to succeed in a project.
A Story to tell about
Side tracking a little about team effort. This reminds me about a story. I knew something who was working as a Management Associate working in a bank many years ago. The selfish bugger intentions were to let the higher ups know that he single handedly solved and produced many solutions for the bank. In reality, he simply used his intern or ex-intern to do so. In summary, he took all their work and claimed the full credit. Why? I don’t know. Perhaps for the money? Most likely that is the case.
Currently, he heads a department but he is an empty shell. This is simply because he gives no credit to those below him. That’s no way a good boss should behave. He is no role model and in no capacity to lead people.
It is precisely because different people view value differently, the variation of behaviour changes from one to another. Even family members do not behave or think the same. This “unique” behaviour is partly why there are so many inefficiencies in the equity market. At any point in time, there are sellers and buyers in the market. That was how a buyer and seller market was formed. Then came the “trend followers” – Because everyone enters into a position, they create a buy volume or trend which pushes the momentum of the company. Often, that is translated to share price as well. However, always remember that the price on the stock market is the sentiment of an investor, not the situation which the company is in.
Over time, people behaviour will naturally act as a herd. When the momentum is to buy or sell, a natural phenomenon is to follow. If you follow, it doesn’t feel like you are missing out. This theory actually touches an emotional aspect of our being that we do not like to be left out. That sounds a little needy but as humans, we are generally weak in such situations. Hence, the word “FOMO” appeared. It means Fear Of Missing Out especially when cryptocurrency coins started to increase exponentially to 100x or 1000x. No one likes to miss out on a good deal.
Not saying yes to everything
Well, I can’t really say much about when is good time to buy unless you are an insider. That being said, it is illegal because it is not a level playing field. Eventually, you will be exposed so make money the right way. I guess that only successes and failures bring experiences.
You can’t just buy anything and everything. There’s the existence of curating for a reason. You have to understand and know what are you buying certain stuffs for and what is your exit strategy.
There are things eventually that you can take risks on and some you don’t. That does not mean that it is not a bad thing. I am an advocate that if there is something new that is worth investing or exploring. Try it out with an open mind. You can be disappointed for 99 times but it only take 1 opportunity to get it right.
This is purely my own opinion that I am writing about in my thoughts. If you like what you are seeing, do remember to check they out and do your diligence. There is no one size fits all investment strategy.