Read post # 8

My mistakes (if only i can turn back the clock and do some time travelling to and back) 
Should have bought GOLD in 2006 and Sell in 2012
Should have bought into US Equities in 2010....
Should have sold all UTs in Early May 2013, except EISC
Should have bought into EI Small Cap in early 2013, then sell off in June 2014
Should have bought into Manulife India and RHB Big Cap China in early 2014
Should have bought into GTF in Oct 2014 till now gained 25%

So many "Should have"......therefore so many mistakes...
from so many mistakes do you think i am smarter now?...i think i am still making them continuosly....

Know what you want?
i wanted ROI.....i selected based on past performances....ended with Heavy M'sia.
i wanted Good track records......ended up realising "Past Performance may not repeat".
i wanted Good Risk Return ratio...ended up any thing can pop up to change the trend....

What i can say is.....(may be AGAIN wrong too)
Try a portfolio of funds that consisted of the % of allocation of funds and asset classes that can may you sleep well at night.
Buy in More when the regions is at lower PE.....don't just buy funds to the required % of allocation for the sake of diversification...b'cos the upside potential may be limited when the PE is high. (sometimes not true too.....during dot com era...PE of tech stocks did go up very high for some time too) 
Like "vanguard" mentioned...if possible buy targeted fund from fund house that have 0% SC when switching from EQ to Bond or vise versa....(if don't have 0%Sc, but if the targeted fund is a desire...then ok-lah)
If unsure of own personal risk appetite...best is to buy funds that are region/global focused instead of single country /sector focused.
If possible select funds that gives the FM more room to play.....example...some fund has this mandate...(min 90% invested at all time).
If possible, try to plan and select well before going in......ELSE frequent changing of funds may cost you money..
If possible....will add in later..

So you see, With so many try and Ifs....
therefore it is better to get involves with alittle bits of cash...(Maybe a few thousands)
by being involves..it may gives you the "hand on" experiences on the emotional factors of investing in which books or forums can never be able to teach or make you feel it......
Just like S_X...no amounts of books or videos can make one feels the "wonder" or "frustration" of it unless one try it.   

if you sell EQ from FH A and buy BONDS in FH B 0% SC the sell again to buy EQ in FH C...will have to pay SC....
better if can sell EQ from FH A and BUY bonds in FH A,......when the opportunity comes...can use the monies in BONDs to buy EQ in FH A....that is what i mean...

when you do "What i usually do is convert EQ to RHB cash management fund. Then to any other fund".
then you will have to pay SC to other FH when you buy.

Serious answer:

i) Recall that US interest rate was very low for quite some time now. Because of these it was very cheap to borrow money from bank and buy up assets. Liquid cash is like water it will flow to the lowest point and start to fill up from there. Hence cheap money will flow to the assets that are the cheapest.

ii) Recall that many assets have been inflated especially the emerging market (bonds, stock-market and real estate)

iii) To cut the story short, should US raise rate, the trend reverse, money becomes expensive, borrowers will sell their assets to pay their debt. Since those easy money came in to emerging market when it is cheapest... it is also the where they will take profit first.

iv) Hence they will start selling these assets to pay back their debt in US.

It is just a reversal of money flow.

Xuzen

My mistakes (if only i can turn back the clock and do some time travelling to and back) 
Should have bought GOLD in 2006 and Sell in 2012
Should have bought into US Equities in 2010....
Should have sold all UTs in Early May 2013, except EISC
Should have bought into EI Small Cap in early 2013, then sell off in June 2014
Should have bought into Manulife India and RHB Big Cap China in early 2014
Should have bought into GTF in Oct 2014 till now gained 25%

So many "Should have"......therefore so many mistakes...
from so many mistakes do you think i am smarter now?...i think i am still making them continuosly....

Know what you want?
i wanted ROI.....i selected based on past performances....ended with Heavy M'sia.
i wanted Good track records......ended up realising "Past Performance may not repeat".
i wanted Good Risk Return ratio...ended up any thing can pop up to change the trend....

What i can say is.....(may be AGAIN wrong too)
Try a portfolio of funds that consisted of the % of allocation of funds and asset classes that can may you sleep well at night.
Buy in More when the regions is at lower PE.....don't just buy funds to the required % of allocation for the sake of diversification...b'cos the upside potential may be limited when the PE is high. (sometimes not true too.....during dot com era...PE of tech stocks did go up very high for some time too) 
Like "vanguard" mentioned...if possible buy targeted fund from fund house that have 0% SC when switching from EQ to Bond or vise versa....(if don't have 0%Sc, but if the targeted fund is a desire...then ok-lah)
If unsure of own personal risk appetite...best is to buy funds that are region/global focused instead of single country /sector focused.
If possible select funds that gives the FM more room to play.....example...some fund has this mandate...(min 90% invested at all time).
If possible, try to plan and select well before going in......ELSE frequent changing of funds may cost you money..
If possible....will add in later..

So you see, With so many try and Ifs....
therefore it is better to get involves with alittle bits of cash...(Maybe a few thousands or more until it can pinch abit)
by being involves..it may gives you the "hand on" experiences on the emotional factors of investing in which books or forums can never be able to teach or make you feel it......
Just like S_X...no amounts of books or videos can make one feels the "wonder" or "frustration" of it unless one try it.