investing UT is long term. I read somewhere it could take from 3 weeks to 30 months for market to recover. I expect the market to recover after the US congress election in Nov. If the democrats win by a landslide, then it is only a matter of time before Trump will be removed/impeach for various reasons. If not, we will face this presistent bear market.

When stocks recover, they will jump up very fast. Missing out on just 10 best days will cost you a lot:

http://www.businessinsider.com/cost-of-mis...15-3/?IR=T&r=MY

I dont like to trade to move to FI or vice versa because by the time i move my money the market already left and i lost the "best" days.

And I am not taking my money out now because i really dont need the money. I am planning to take it out after 30 years from now. If it gives me an annualised returns of 10% i am very happy. I only transfer out only if there is an underlying long term change to the market or the fund is underperforming compared with its peers.

This post has been edited by ChessRook: Apr 3 2018, 09:14 AM

If you are able to get your hands on the limited fiXed price ASN then the returns are not that volatile.

The US just attack Syria. I believe this is just a short campaign and just to send a message. Not striking would make US appear weak to the eyes of some US electorate.

The stock price will plunge on Mon, back to the more bloody red again

What Trump does is what Trump does. Reactionary and playing to his base. All the republicans care about is their interest groups; i.e. By cutting taxes, reducing regulations etc. A recession is just a byproduct and unintended collateral damage that Trump has no clue on.

This post has been edited by ChessRook: Apr 14 2018, 04:56 PM

Small caps stocks are riskier than big cap so expect higher volatility. Good idea to spread into different types of equities. Big vs mid-small caps, geographical, and sectoral behave and move differently.

KLCI is about the big-caps. Less volatile than the mid-small caps like KGF. Don't chase past performance. Diversify into different equity type stocks, e.g. big caps, mid-small caps, geographical, sectors.

Cimb global titans? Perhaps into US, Europe and japan if you want to diversify into those regions

This post has been edited by ChessRook: May 26 2018, 11:42 PM

We have a few uncertainties among many; US-China (Trump) issue, rising interest rates in the US plus a new change in government. Thats why the downward trend in the Asia-Pacific, emerging markets + Malaysia funds. Once those uncertainties are clarified then I sense the portfolio will see an upward movements.

TA Global Technology Fund is doing quite well while the rest of my portfolio is in red. I made a mistake. I should have invested more stocks in that fund or other funds outside the AP region.

Can someone suggest a fund that is not that correlated to the AP or emerging regions? Maybe CIMB Global titans?

This post has been edited by ChessRook: May 30 2018, 10:21 AM

Thank you

Yeap the islamic bond market but I am looking for equities then it would be?

This post has been edited by ChessRook: May 30 2018, 10:53 AM

To have a balanced portfolio. But my geographical funds are too focused on AP. That's why I am not buying into China funds now even though it looks very tempting.

I do have other funds like bonds and other fixed price funds.

Thats why Unit trust are long term investments (>5years the longer the better). In times like this, top up your investments some more (if you are brave), rebalance your portfolio or just turn off the news and don't read lowyat .

When the stock market recovers, you can come back and look at your portfolio.

Yes malaysian market

It is just what people say "the cycle". Maybe the cycle starts earlier this year in 2018? No one really knows.

Just invest when you have the money. If you want more safer options, ASNB, and FD is for you.

Same thing with most investments like shares, reits, money markets funds, asnb, UT, and FD.

You might want to consider the following side income:

renting out spare room in the house, grab, tuition, pooling money from family members for downpayment then borrow loan and jointly buy property to rent out (risky, need property knowledge and troublesome to liaise with family members and maintain the property), and some other part time job etc

I think you should start a new thread since this thread is for giving help to fundsupermart investors

This post has been edited by ChessRook: Jun 17 2018, 11:01 AM

Good point j.passing.by. How does one know the timing? What if one invest in bonds and US interest rates jump, bonds price will get affected no?

How does one tell when stocks will pick up again? When it goes up and then falls down? Or it goes up and up and up? How can one tell? Also UT funds takes a few days to buy and sell (forward pricing), so the timing is worse. By the time you buy or sell, the market has already moved a lot. Also when buying or selling UT funds, there may be transactional costs, right?

If you know these facts, then what is the better investment strategy, then?

Bond funds have the following characteristics:

1) it has low correlation with equity fund. Take a look at the chart centre at fundsupermart. Lets just look at Malaysian funds to ignore the exchange rate noise for simplification sake. Compare several Malaysian bond funds (libra anista bond, etc) to pure Malaysian equity fund (eg kgf etc). what is the performance of bond funds compared with equity funds?

2) Even if the bond funds drop the decrease is less than equity funds. Again lets look at some Malaysian bond funds eg Amb enhanced bond trust fund but if one compares with eg KGF what can one observe?


Guven these two characteristics, which investor is suited for bond funds?

Lets take two example, investor A who knows that in a few days time he has to pay his kids college fees. Should he sell his equity funds now and realised his losses? Wouldn't it be more prudent if he sell off his low risk bond funds while waiting for the market to recover?

Lets take another example, investor B who is 80 years old. He doesn't have any salary and he can't really predict his expenses. He knows that there will be a lot of emergency spending on medical, repairs etc. He also knows he may have 1-3 years left and doesnt want to burden his kids who are under debts and have their own family to support. Is equity funds really appopriate for him?

Investor C used low risk bond funds as a rebalancing tool. Once a year, he will reassess his porfolio. When stock market increase and is over the boundary say 10-15% of the assest allocations, he will sell some equity funds and put it in low risk bond funds. The converse is also applicable, when the stock market decrease like it is now. He will sell bond funds and buy his equity funds. He is applying the principle of buying low and selling high.

So there are uses for low risk bond funds. Don't blindly follow Buffet's advice because people like him, JhoLow are super wealthy. Millions are nothing to them. These principles may not apply to them.

As an aside not all bond funds are low risk. For example, foreign bond funds have higher risk due to exchange rate risk. There is also money market funds which has lower risk than bond funds.

DCA = dollar cost averaging. Lets take the example of purchasing UT. The idea is that because one doesn't know whether the price of funds will go even lower, it is more prudent to spread ot your purchases so that you don't buy at a higher price.

Suppose you have rm30,000 that you want to buy UT. Instead of investing all 30,000 now when the UT funds might go down further (eg Trump carzy policies, more bad things discovered in GLCs, US interest rates increase etc). You park say rm20,000 at money market funds earning about 3.5% interest, and invest 10,000 at equity funds. In the next month, you invest another 10,000 in UT while leaving 10k at the money market. In the following month you invest the last 10k.

The converse also applies to selling.

This post has been edited by ChessRook: Jun 21 2018, 11:39 AM

I am talking about bond funds and not individual bonds.

I am just highlight the fact that bond funds is still valid investment vehicle. I am just putting caveat into your statement of putting 100% into equity. The reader needs to be aware of the purpose, usefulness and circumstances of putting savings into bond funds. And it may not fit all investors.

Yes I do agree with you about this EPF-UT but our discussions are not about this.

Still DCA, no? Still is splitting your lump sum into interval purchases.

If you suddenly have a huge amount of lump sum (say from sale of house or a large bonus ), not a good idea to buy all into unit trust at one time. Split and spread the purchases of UT. It is still dollar cost averaging which is to reduce the impact of volatility on the purchases.

OFC what you mention is still cost averaging.