Portfolio Construction

Different objectives drive different asset allocations in your portfolio

You will need a prudent approach if investing for the short or medium term e.g. House downpayment or Children Education and must protect your capital against market volatility

On the other hand, if you want to be financially independent, retire early and have a long term vision market volatility may help you achieve great returns over time. A typical model portfolio will be more aggressive towards long term returns

If you are approaching retirement and/or focused on regular cash flows and want to reduce Equity Risk you may look at Corporate Bonds (this section is currently for US Investors only – Europeans, please subscribe to newsletter be posted)

Based on Research, 2 out of 3 times investing Lump Sum immediately is better than Dollar Cost Averaging (with 2% incremental returns over a 12-month period)

Ready to invest? Have a look at the Checklist of things to consider

Below is research relevant to How to build an Investment Portfolio for beginners and more advanced investors

asset class matrix 2009 2019 gold nasdaq reits S&P dividend aristocrats corporates bonds treasuries TIPS

Investing for Financial Independence? Pay attention to Key 12 Asset class returns

July 17, 2020 Banker on Wheels 1

Asset allocation is typically the most important driver of portfolio performance (up to 90%). You can learn about the wider markets and the fact that being unfamiliar with an asset class is not always an excuse for not including it in your portolio mix – we tend to have a ‘domestic’ and ‘familiar asset class’ bias and that’s why a lot of investors just focus on domestic Equities

ALL WEATHER STRATEGY FOR COVID-19 MARKET

COVID-19: Bear Market 100% S&P 500 Investment Strategy

April 18, 2020 Banker on Wheels 2

I don’t mind if Stocks crash because my investment strategy will generate higher returns. Could you lock-in high returns in a Bear Market? More importantly, can it be done so that you don’t have to predict which way the market will go this year? Without diversification and only investing in Stocks? Here is an example of how it works.

Investigate buybacks before investing

April 8, 2020 Banker on Wheels 2

Buyback companies underperformed YTD – while S&P 500 is down 16%, the S&P buyback Index is down 30%. Investigate the highly uneven distribution effects and consider this before investing in those sectors and companies.