hyup typical "investor" approach that - sell low & buy high - rinse & repeat till 0 bwhahaah

Tbh how many really bear markets can you find these days?

A proper bear market is a mini recession followed by a true recession. You need to monitor bond market and bond prices to be really sure of that. I’ve encountered 2 in my 15 years of investing. What do you really want to do at those times can make or break if you do the wrong thing whereas in both cases just doing nothing also not that bad eventually.

can sifus share what is your investment goals when you started with Stashaway?

I started with SA (36% highest risk) was hope to beat EPF return (as I am using my i-Sinar money to invest) at minimum, and expect it to beat S&P500 (which I painfully learn today it is impossible )


is Sifus treat SA as defensive portfolio in times of volatility like this?

Some treat it as asset growth Plus MYR depreciation mitigation....

EPF has 51% bond, 3% cash/mm, 40%+ equities and real estate.

From here you just need to make sure you are above 16% var should outperform EPF already.

Not a sifu, just trying to get better returns of 8-10%. For this I think Stashaway fits my purpose, I have a 36%, 30% and 22% ports that are long-term in nature, only expect to use them in 2031 onwards.

That's the way. Although 1 portfolio is kinda enough, because when you withdraw little bit regularly from it, it will sell the overperforming assets first. So it kinda works the same as having multiple portfolios.

According to SA, their own prescribed risk index (Value at risk) of 36% IS indeed matching and equaling the the S&P 500 Risk index (this is a well known figure you can just google it).

The logic is with equal risk (standard deviation) the return should be equal.

Now, the job of SA is to make sure the standard deviation remains the same at 36% Var, and if that is the case year in year out, then if your portfolio does NOT match S&P500, then there is really no point to give SA your 0.8% fee.

Back when KWEB shot up early this year, we handily beat S&P 500 for a few months. It means nothing now that KWEB is no longer erectile, and it also means nothing if not compounded over many years....so, as many investment cases, beating S&P 500 is over long period is indeed no simple matter. It is not impossible, just improbable. I believe we will match S&P 500 and outperform it in the long run by maybe 1-2% if we are lucky.

It does beat EPF, but there is no guarantee. The thing is, if you withdraw from EPF, you are subjecting your money to RISK. Now you are the only one able to gauge the worth of taking such a risk. TBH, I will never withdraw from EPF, as I always aim to squeeze my own income for savings and investments. That is a personal thing.

does that means bond prices are usually up during the bear market ?

Bond prices go up when the APR yield go down. You can say bond may go up against equities, but not go up in cash value?

SA is changing their money market fund. Just received this email:

Due to uncertainties in how the current underlying fund in StashAway Simple™ will be taxed in the future, we are changing the underlying fund from Eastspring Investments Islamic Fund to AMIncome Fund. The change will be completed by 25 June 2021.
Here’s what you need to know:

> Simple’s projected rate will remain at 2.4% p.a.
> It’ll have a StashAway Risk Index (SRI) of only 0.1%
AMIncome Fund is a mix of money market funds and short-term corporate bonds. It's a conventional fund, so StashAway Simple™ will no longer be Shariah-compliant
> You won’t incur any fees for this change
> Moving forward, you'll earn returns on your Simple funds every day, but your returns will be reflected in your account on a monthly basis.
> There’ll be no change to the deposit and withdrawal timelines

SA will never beat SnP500 for 1 simple reason because of GOLD and their strategy is to preserve your capital while stimulating growth while protecting your depreciation currency

If you want offensive strategy you be better off buying high conviction equities instead

not quite accurate


https://www.kwsp.gov.my/ms/-/epf-records-he...ome-for-q1-2021

Close lah, 52-54% in low risk assets, the rest in equities n real estate.

My full equities (well 99%) 36% port beat s&p 500 by 2-3% of S&P 500 for the last 1 year. It is almost entirely consist of US equities ETF with small percentage of exposure to europe from VGK. This is after fees performance.

Remember SA does not have any gold in 36% up until May last year. Of course it is only 1 year, but most of the component are from s&p 500 after all with exception of small cap obviously

This post has been edited by backspace66: Jun 18 2021, 06:36 PM

Logically, for a portfolio with significant defensive assets like bonds and gold are not going to beat a diversified 100% equity index.

Short term yes the 100% equity stock can lose but long term say 10-30 year period, unlikely. Otherwise, everyone will just load up on bonds and gold and don't even bother with stocks.

Double post. Removed

This post has been edited by stormseeker92: Jun 18 2021, 07:32 PM

does that mean my money in Simple will be taxed in the future? If that's the case, i need to do withdrawal then...

No, they switched fund so you wont get taxed