| Latest Forum Topics / SMU E.y.E - Others |
 Post Reply
|
|
Portfolio Rebalancing
|
|
|
KiLrOy
Master |
03-Feb-2008 12:56
Yells: "I buy only what I can see." |
|
x 0
x 0 Alert Admin |
The investment clock is there as a big picture so how I preceive it as another thing altogether. If the majorties thinks its 2pm, then the reaction will be 2pm. For me if the trend set to be 2pm, I will rebalance accordingly to 2pm. |
| Useful To Me Not Useful To Me | |
|
bodobin
Member |
01-Feb-2008 15:04
|
|
x 0
x 0 Alert Admin |
Hi KiLrOy, That's an extremely interesting post you have there - certainly keeps me guessing what time is it on the Investment Clock right now! I mean, at the moment we are seeing mixed characteristics of the investment clock, or perhaps my interpretation of the current situation isn't quite there yet. Is there a definite time frame to how long a full turn on the investment clock is? |
| Useful To Me Not Useful To Me | |
|
|
|
|
KiLrOy
Master |
31-Jan-2008 14:51
Yells: "I buy only what I can see." |
|
x 0
x 0 Alert Admin |
Hi bodobin, I think sometime back I did consolidate a post on investment clock in SJ. Here's the URL for your reference. Hope this helps. The objective is to maximise profit following the clock as we all know recession doesnt just happened in a particular decemeber year. http://www.sharejunction.com/sharejunction/listMessage.htm?topicId=4404&recordCount=1 |
| Useful To Me Not Useful To Me | |
|
bodobin
Member |
31-Jan-2008 10:46
|
|
x 0
x 0 Alert Admin |
Hi KiLrOy, Can you kindly elaborate more on the "investment clock" concept you use to rebalance your portfolio? Cause I think its quite a refreshing concept compared to the widely known fixed time period. |
| Useful To Me Not Useful To Me | |
|
KiLrOy
Master |
30-Jan-2008 15:24
Yells: "I buy only what I can see." |
|
x 0
x 0 Alert Admin |
rebalance is definately a MUST for any value investor. Mine is done based on the invesment clock rather then a fixed period and its either SELL EQUITY to BUY a FIXED INCOME instrument or SELL FIXED INCOME to BUY EQUITY. |
| Useful To Me Not Useful To Me | |
|
|
|
|
ltvalue
Senior |
30-Jan-2008 14:34
|
|
x 0
x 0 Alert Admin |
I was recently re-reading Intelligent Investor by Benjamin Graham, and found his discussion on Portfolio rebalancing very interesting. He said that for most investors, though rebalancing may not be the most profitable, but it instills discipline for investors to take profit in a generally rising market and buy into stocks when markets are falling. For instance, assuming a 80% stock, 20% bonds mix, when stock market rise rapidly, we would have to sell some stocks and buy some bonds. In this article http://money.cnn.com/2007/02/13/magazines/moneymag/asset_allocation.moneymag/index.htm , it showed the stategy applied to individual investors. "The tiny slivers of international stocks you bought a few years ago are now big chunks, your large-cap holdings have swelled, and the percentage of your portfolio devoted to relatively secure bonds has been squeezed into a corner. Not to scare you, but that's a risky situation. If one of your largest asset classes should take a sudden fall - the way emerging markets plunged nearly 60 percent between 1997 and 1998 - your returns will go into a tailspin along with it." |
| Useful To Me Not Useful To Me | |