Invest
Asset Allocation Strategy
By Frugal Daddy. Love What You Do.  •  July 6, 2015
For simplicity, I will only look at Cash and Stock rebalancing, neglecting my bond/bond-like instruments.
Using STI ETF as reference Cash Stock (capped at)
≥ 5 years historical high 90% 10%
10% dip from highest 80% 20%
15% dip from highest 75% 25%
20% dip 60% 40%
30% 50% 50%
40% 30% 70%
50% 20% 80%
>50% 10% 90%
This will not be 100% possible due to market fluctuation and opportunities to buy, hold and sell stocks. However, this served as an ultimatum to be balanced. Question: Which company to invest during the dip? I will be looking at companies that dipped more than STI ETF as it could reflect a possibility of overselling by pessimistic market sentiments. Another good purchase opportunity will be new entrant with growth potential. Last but not least, companies with undervalued stocks are good buy too. All in all, the asset re-balancing should not exceed ......
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By Frugal Daddy. Love What You Do.
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