Well it's from Gen-X. He already showed he did it 2 times 1998 2008. Pull out before crash, buy again when crash.

Fsm did hv an article about cost of procastination....
Allocate in a manner that will hv dry powder at hand...not sit with cash waiting for the time

That is not wait with cash waiting for that time...bcos no one knows how long that wait is gonna be, how severe it is, for how long it gonna last & where it gonna happens severely n nit so severely

This post has been edited by T231H: Feb 7 2017, 10:46 AM

Did he recommend the cash to be x % ?

Nope. Nothing. He did mentioned he withdraw 80% of all his stocks holding right before the 1998 crash.

He said those who are sitting on pile of cash will benefit from the crash as everything will be on fire sale. Property, stocks. Told us to prepare for it.

This post has been edited by Ramjade: Feb 7 2017, 10:47 AM

must be pretty dumb for a wise man coz if it doesn't happen within another 5 years or more how?
also, when to get back in? it may be a double dip or triple dip

unless one can predict the future, wouldn't a "proper" (ie. fits one's sleep needs VS growth needs) asset allocation be better?
eg. AA between cash & fixed income, business equities, real estate equities, gold/commodities
heck, going into extreme AA - guns, parangs, bear spray, dry food, canned foods, generator set, etc too if one worries about war/collapse of civilization

This post has been edited by wongmunkeong: Feb 7 2017, 10:49 AM

Well if it's dumb, his strategy, his wealth and his track record speaks otherwise.

Luck or good process/strategy?

so what did this wise man do in 2008, 2009 & 2010? and the outcome?

Buy in and run before it happens? It's on his old blog (a graph which show when did he buy and when did he run).

He admitted he did make loss because of greed.

hehe - more importantly:
1. Is his process good & repeatable?
2. Is his process executable by normal humans like us without special "links", resources, etc?

eg. a kaka load of fellows wants to do like WBuffett
think about Buffet's focus, lifestyle, etc
willing to pay the price like him?
have the access to resources +network like him?

if not, er.. shiok sendiri ka?

no right/wrong - just think about it neh

This post has been edited by wongmunkeong: Feb 7 2017, 10:57 AM

This people ar.... keep thinking about the 2007 crash lar, 1997 crash lar....

Forgetting that these things happen so infrequently. So between those times, whatcha gonna do? Put in FD and tunggu like a dungu? FD returns like 3.XX% p.a. and we all can agree that FD is < inflation.

OK lar, lets say the market drop like 30% during these times... and you very cleaver - clever buy at the lowest price.

But if you DCA regularly in those ten years time, the compounding could be more.... I will do on to Excel it to find out.

Xuzen

This post has been edited by xuzen: Feb 7 2017, 11:08 AM

to give a thought to that regarding FD, won't FD rates sky rocket when market crash? so would putting in FD while the market is lausai-ing be more worthwhile? don't shoot me. just a question.

Cool but people should stop saying that FD < inflation. FD is only < inflation is you aren't really smart.

That's the fact. Look at your normal nasi lemak.

That's why I said.. if you are smart, your nasi lemak is really cheap really tired of people complaining FD < inflation when they mean FD < can't live like a king

This post has been edited by wodenus: Feb 7 2017, 11:18 AM

It doesn't have to be binary, all this way or all that way. I have been in equities, either directly or indirectly through funds all this time. All I'm saying that the risk of global crisis seems more elevated than normal right now. Doesn't it make sense to divest some and hold more cash in anticipation? If we reach June and FN doesn't win the French elections, we can consider the risk to have fallen somewhat. If we reach the end of the year and Trump still hasn't put up his promised border taxes, we can consider the risk to be diminished even more. So I lose some equity gains for approximately a year and earn FD-equivalent interest instead. Is that so bad?

This post has been edited by wankongyew: Feb 7 2017, 11:25 AM

This is what I can say, you are not alone.

I remember a while ago there was a talk in here about some recommended portfolio in eUT, the more conservative one has upto 80% of allocation in Money Market fund.

I just went back to eUT to check the article but apparently it is deleted already.

Bro, you don't get what I meant. Look at how much your nasi lemak cost now and then. Can the amount it increase match the return by FD?

Look at normal kuih. Now one piece RM0.80 from about RM0.50. Petrol price keep going up = price of things keep going up. After they go up, do you think it will drop?

Why do you think I moved from promo FD > ASX FP > to UT?
Cause FD returns cannot keep up your normal everyday price increaee which never drop.



This post has been edited by Ramjade: Feb 7 2017, 11:51 AM

Bro I suggest you don't spend your energy on ah jib kor kind of talk.

Remember, Ah jib kor says he could get RM 1 of nasi lemak with chicken meat and he could also get bargain deal of RM 1 of a whole chicken at some supermarket.

FD is a short term parking place. For short term tactical reason is ok lar. If for long term as a wealth preserver, FD suxs big time!

I am not smart wor.....I want my latte and chinnoes every breakie, lunch & supper. I want it to be serve in fine china too. Not some cheapo polystyrene foam cup. I need to look good all the time!

Only Mdm Kwan's MYR 21.90 nasi lemak for me. The rest of you peasants can eat the cheapo 70cts nasi lemak. I don't care! Go eat cake!

I don't wanna live like a king... I wanna live like Jib Gor!

One year = short term ok lar. See my earlier response.
he he he... they have seen the folly of their ways!

Xuzen

This post has been edited by xuzen: Feb 7 2017, 12:01 PM