Prudence is the Key!

Due to the current market conditions, you may start running away from the market.?

Acting panicky.

It’s understandable.?

To calm your nerves, with you in mind, I drafted a LOVE letter.

Understandably the market is getting choppy but it’s not the end of the world.

Many have felt the same way as you but it does not mean there is no solution for it.

You are certainly not alone. I’m also facing a crunch.

Every day there is bad news.

The market moves up and down as the market does not promise us anything but to be conscientious stay invested and adjust the portfolio accordingly with time.

But with a clear objective of your long-term saving, we can prevail.

Firstly, you have an aggressive risk profile in mind with a long-term horizon, looking at your retirement age, so we have an investment objective.

Now that we have re-established the goal, let’s firm up what’s next!

With the current choppy and uncertain market, one way is to park/shift to the money market or short-duration bond and monitor for the next 6-12 months.?

However, do not expect alpha!

The interest rate for this asset type could rise as the FED rate is hawkish and attempt to move the market to a preferably smooth landing to battle against long-term inflation.

Next, we can do a Reverse Dollar-Cost-Averaging approach.?Meaning to say, use the existing funds to do an “internal” systematic saving program for the next 18-36 months.?This a useful strategy as the market tends to react upwards after hitting the bottom.

I do not have a crystal ball, so I cannot predict when the bottom-bottom happens! But, at best, we can forecast with caution.

We are fully aware that Dollar Cost Averaging (DCA) has been serving its purpose well.

After all, the objective is to arrive at the long-term goal and we have a time horizon for it.

In addition, past records and experience have shown it works given time and staying invested, rather than, time the market.

One suggested asset allocation, subject to your review, is to allocate

5x% Asset 1

5x% Asset 2.

This is a 2 notch down from your risk profile.?

Another suggestion is to do a region-based asset allocation with a Reverse DCA that channels funds to the following:?

2x% to “Region 1”

2x% to “Region 2”

2x% to “Region 3”

2x% to the “Region 4”

As wealth building is not investment punting, we can relook to understand the current and future market.

Last but not least, you can still withdraw the funds and put them back into your respective accounts that can be deployed to invest in the near future.

So these are the suggestible I have.

To elevate a peace-of-mind-investing in this current market, I have 2 upcoming public talks to attempt what can we do with our money to battle this “predictable” market since we have been informed of so much bad news.

Adopting the contrarian approach could be the best antidote for this “predictable” market.

“Be fearful when others are greedy, and greedy when others are fearful.” - Warren Buffet, The GOAT investor!

Whenever being consulted, I will do my best as an independent financial adviser representative to provide objective views to let you arrive at an informed and appropriate decision to make.

I’m tasked to take on this mission to be with you in your wealth journey.

Prudence is the key!

www.ChewHockBeng.com

1st event: https://bit.ly/moomooLAL

2nd event: https://lnkd.in/ga7fCDVu ?