Hi Mr Tan,
Someone told me that you coin the term "Risk is to your advantage". Can you explain this concept?
The global stockmarket goes in cycles. You have some good years and some bad years. Over a long period, the return is averages about 6% to 10% per annum.
If you hit a bad year, the prices may go down by up to 30% below the trend line. This is a bad time to sell. You should wait for the market to recover. It will usually take one or two years, but may be longer.
In a bullish year, the prices may go up 30% above the trend line. This is a good time to realise your gains. In this case, you can get a much better return than average. It is also all right to keep fully invested in a bull year, as it may go higher.
If you are investing your money for the long term, you can wait for the right time to realise your investment. This is how you can turn risk (or volatility in the price) to your advantage.
- ► 2020 (752)
- ► 2019 (1839)
- ► 2018 (1406)
- ► 2017 (1258)
- ► 2016 (828)
- ► 2015 (691)
- ► 2014 (144)
- ► 2013 (501)
- ► 2012 (1269)
- ► 2011 (1873)
- ► 2010 (2369)
- ► 2009 (1654)
- ► 2008 (2104)
02/18 - 02/25
- Take a flexible and transparent loan
- Philips Securities promote i-Term
- A senior couple is interested in part time work
- Lunar New Year Party
- Kind words from a cooperator friend
- Today paper, 'Mr Income' puts his feet up
- Center for Seniors
- Goodbye to Uncle Larry
- A whole life policy pegged to a child's age
- Japan has a low birth rate
- A larger population of Singaporeans
- Short term interest rate increased in recent years
- Why structured products are not popular in America?
- Decreasing term is really affordable
- Stop paying premiums on your whole life policy
- My Chinese name, Liang
- Does car insurance policy cover car pooling?
- Learn how to use public transport
- Valuing their labour
- Workfare Bonus
- Risk is to your advantage
- I treat all the lanes fairly
- Difference in terms used in American and Singapore
- Better to buy term and invest the difference
- An honest investment banker
- My wife's cousin migrated to Australia
- Is private banking anything special
- Use a short word
- Why do my agents say that my insurance is not enough?
- Buy term and invest the difference
- My honest opinion
- Trailer Fee
- Term with critical illness cover
- Life Insurance Policy with Cash Payout
- ▼ 02/18 - 02/25 (34)
- ► 2006 (696)
- ► 2005 (159)