Dennis, how did your Investment Portfolio perform in 2008?

[Dennis Ng]

Year 2008 was a treacherous year for stocks. Anyone who only invested into stocks, especially in early 2008 when prices were higher are likely to see their portfolio down by over 30%.

As forumers might know by now, as I was not positive about stocks (selling most of my stocks in year 2007), I've moved part of my money into Other Investment Assets that are not so much affected by the stock markets.

I decided to put my eggs into different “baskets”, (asset classes). So far, this strategy has served me relatively well in year 2008.

Current position: 23 Jan 2009
1. 4% in Gold – up about 7%.
2. 3% in Silver - Silver down by 33%
3. 10% in Land Banking - Resale value up but not Cashing out.
4. 12% in UK Traded Endowment – sterling pounds down by about 22% from my average exchange rate of 2.7.
5. 5% in Fine Wine Investment – up 14.48%.
6. 26% in stocks – down by about 25%.
7. 40% in Cash – earning about 1% interest.

My overall portfolio is down by about 19% in year 2008.

My personal opinion is that stock markets are likely to bottom in year 2009. Thus, this year, I'm likely to put more of my money into stocks.

Just my personal opinion. I might be totally wrong.

[Dennis Ng]

Hi Dennis,

Understand you are still holding lots of cash and wait for market to bottom, but I feel the upside risk is much bigger than the downside risk ,so already 100% invested when STI hit below 1500, the portfolio yield is around 14% based on the price on that day. I got a feeling that reits already hit or near bottom , even if price continue to slide for the next 2 years, the cash dividend can still give me some buying power.

I expect this strategy to triple the capital value in the next bull run,then I will channel some capital to more safe investment like Bank NCCP share, Govt Bond,Utility stocks, etc.

Do you think this strategy workable ? how risk is it ?

Thank and Regards.

Hi tradeforliving,

becos I was "too early" in the last Market Crash in year 2000, whereby I exhausted all my Opportunity fund by early 2002.....and market went down further and only bottomed in March 2003.

That is why this time round, I keep reminding myself NOT to repeat the same mistake.

yes, I only have about 28% invested into stocks, still have 37% in Cash and 34% in Other Investments.

From the 3 indicators I observe about previous market bottoms, it seems like we have not reached bottom yet. Anyway, I'm happy to let the bottom passes me by to mitigate risks of catching fall knives.

yes, I think most of the REITs are already at prices that seem to factor in worst case scenario situations. That said, my No. 1 question is always "What if I'm wrong?", thus, I'm not ready to commit all my Opportunity Fund YET.

When we look back in future, I might be wrong. But at least, I think I'm trying to "learn" from the previous Market Crash experience to position myself this time round.

Actually, one reason why I post in internet forum is to use all these postings for my own review in future as well, so that I can know "what" was I thinking during different periods of this Crisis. Becos if I don't "pen" it down in posting, I might actually forget what was I thinking now a few years from now.

Please note that I'm not here to give anyone investment advice, I'm just here to share my personal opinion and as I said, write things down for my future reference and review.