I have around 15% allocation, not much haha. Regret not buying more in dec

Portfolio going down again these few days...
😂

Or maybe its a good time to topup

No ammo to top up at this moment.. 😢

Rational Man Versus Psychological Realities....
In this update, Henderson's Chief Economist, Dr Shane Oliver explores how investor psychology influences equity markets. ....Author : Dr Shane Oliver

IMPLICATIONS FOR INVESTORS

The influence of investor psychology on investment markets has several implications. The first is to recognise that markets are not just driven by fundamentals, but also by the irrational expectations and erratic behaviour of millions of investors. But investors also need to recognise that not only are investment markets highly unstable but they can also be highly seductive. The trick here is to be at least aware of past booms and busts, such that when they arise in the future you do not overreact. This is the best defence against Mr Market?s seductive tricks.

Secondly, investors need to recognise their own analytical and emotional capabilities ? in other words be aware of how they are influenced by the lapses of logic and crowd influences noted above.

The third is for investors to choose a strategy which is able to withstand inevitable crises and yet remain consistent with their financial objectives and risk tolerance.

The fourth is to essentially stick to this broad strategy even when surging prices / plunging values might tempt a change.

Finally, if investors are tempted to trade ? they should do so on a contrarian basis. Buy when the crowd is bearish, sell when it is bullish. Extremes of bullishness often signal market tops, whereas extremes of bearishness often signal market bottoms. Contrarian investing though is not fool proof ? just because the crowd looks irrationally bullish (or bearish) does not mean that it cannot get more bullish or bearish, taking the price up (or down) further.

https://secure.fundsupermart.com/main/resea...?articleNo=1089

Making Money From Investors' Irrational Behaviour
Behavioural finance is the study of how emotions affect our decisions to invest
HOW A BEHAVIOURAL FINANCE FUND WORKS

According to Douglas, the predictable yet irrational behaviour of investors causes mispricing of securities on the stock market. This then presents an opportunity for profit. He claims that asset managers are in a position to exploit this opportunity if they know exactly when to jump in and buy a stock. The goal of the behavioural finance fund is to buy low and sell high.

The Behavioural Finance investment strategy is complex. Ho explains that he measures certain indicators like whether a stock is undervalued, or if investors may have overreacted. He also takes into account longer term trends of a company. This information is processed by a computer software which then selects 60 stocks out of a much larger pool of stocks. These pickings form the fund's holdings. The process is repeated every month. Those stocks that are not on the list, but are still in the fund's holdings are sold off.
https://secure.fundsupermart.com/main/resea...l?articleNo=404


wow,..pening-lah.... well, just leave it to the FMs....shut off the news reports....come back months later...may and ask WTF...how come my portfolio dropped so much!!! .
..well that is predictable behavior but irrational because if make profit did not say thank you to the FMs..

This post has been edited by yklooi: Mar 9 2015, 09:47 PM

Er, no you can't, ie not just leave to the FM. You need to include the following as well:

Step 1. Decide on the broader market/segment/sector the fund is invested in.

Step 2. Decide on how your selected Fund Manager is performing in relation to other managers in Step 1.

DCA/VCA or any systematic system doesn't help either, because it doesn't distinguish between a good or a bad fund.

in step 1...if the big brother US dropped...I think ALL also kena.....
step 2...ok

Sure, have some input, which is what I was getting at. Rather than leaving it entirely to the FM, and "hope for the best".

BTW, US indices look green at the moment.

i would still leave it to the FMs and hoped for the best...AFTER I had set up a diversified portfolio at the ratio that I am comfortable at, with the monies that can left untouched for a few years.....occasionally review to see how the FMs are doing.....Change if like what you mentioned in step 2...

Ah, but if you review and change, you are not leaving it entirely to the FM. The question is how frequent.

If you didn't do anything for 10 or more years, say, that's a different story.

If leave for 10 or more years...
could be too old/dead,
the % of allocations also needs to change to reflect the changing needs before that time come
I would say review after 3~5 yrs (subjective)

This post has been edited by yklooi: Mar 9 2015, 10:42 PM

is that "the predictable yet irrational behaviour of investors"?

We may a terminology problem here, because it you review after 3-5 years, you are not exactly leaving for 10 years.

But anyway, I'm not here to discuss your personal circumstances - I'm simply pointing out alternative viewpoints that readers can decide for themselves.

that is great for all readers....

Because there is no such thing as a typical "investor". There is a large pool of investors with quite different objectives. Some are short-term traders, others are long term investors. Their objectives are not the same.

So the question is whether the majority shares your opinion in which case they are rational. If they don't, you would probably call them irrational, and they could call you the same.

One approach could be this: "Be Fearful When Others Are Greedy and Greedy When Others Are Fearful'. Buffet, of course. You decide.

good morning.

been through 18pages of this thread while waiting for FA cup QF. Mufc v Arsenal.

should rename this thread.. "LYN Official Fundsupermart.com" v9 .

isn't that contrarian investing or value investing?
UT fund investors allocate to appropriate sector/region to diversify and add/top up to a certain level when they think got value...then up to FMs to do the others.

Why? got another or other similar one in lyn?

have to leave it entirely to the FMs...cannot tell them where and how much to go in. we can only control what is %allocated in the portfolio..that % too are always changing if you see their monthly report.
review and change if the intended allocation are misplace out of our comfort % or that the purchased funds are below par among its peers or that personal preference or needs changes.
how frequent to review?...very subjective....at least once a year (minimum)?

Up again.. 😁