Tan Kin Lian's Blog: Liquidate 50% of your investments

Wednesday, July 11, 2007

Liquidate 50% of your investments

Dear Mr Tan,

I have invested quite a bit in all the funds of Ntuc Income, mostly in Growth and Balanced Fund. All are showing positive gains.

If the market gain another 10%, I plan to liquidate all and wait out for the next down cycle, if it happens.

What is your advice?

------------------------

REPLY:

I suggest that you keep the investment in the Growth fund (as you invested at a low price). If you really wish to realise some cash, perhaps you can liquidate 50% and keep the remaining 50% in Growth Fund. This is what I did for my own investments.

8 comments:

Khiat Han Hwee Adrian said...: Whether to sell or not depends on your needs, ability to hold the investment and time horizon.

If you are looking towards long term wealth accumulation, not in need of the money in the short term and are able to withstand the mid-term market cycle, I suggest that you stay invested. It difficult to time the market.; July 12, 2007 1:09 AM
Anonymous said...: Mr. Tan

I think your view on timing the market is unfair to people who are opportunistic and people who visit your blog to get tips.

Are NTUC Income funds to be viewed like stocks?

Instead of verifying what the investment objective of the person who ask you the question, you suggest to sell immediately.

Put yourself in the shoes of the Income fund's fund manager: the next day he/she walks into the room, checks the computer, and found everyone liquidating the funds - what kind of bullets does he have left to use?

In and out. In and out. In and out. Sounds like some kind of illegal activity.

I think you should take a long term view, review your financial objectives, understand the fund manager's outlook and continue to stay invested. My advice goes to you to, Mr. Tan.

Cheers.; July 12, 2007 10:58 AM
Tan Kin Lian said...: Dear Anonymous

If you wish to express your view, please state your name and occupation.

You sound quite arrogant in making judgement of other people's views, especially as you do it under the clock of anonymity.; July 12, 2007 11:27 AM
Thomas Phua's Blog said...: I think Mr Tan's advice is sound.

It is a fact that many will also know buy low sell high.

Not seems high, what's wrong with selling some and if got opportunity, buy at low later.

I am the one asking this question, and I sold some today.

Mr Tan may be wrong, and may be right, but I already made some profit I am happy with.

So what if the market go even higher?

This are personal decision.

Don't blame anybody.

Share the info and then make your own decision.; July 12, 2007 8:46 PM
Thomas Phua's Blog said...: Most of us who are matured enough would have seen last 15 years how the market dip a few times.

So nothing wrong to learn to sell now, sell high buy low.

All of us know that the global economy is quite bullish now. It may be able to surge higher, or correction is around the corner, nobody can know for sure.

Mr Anonymous sounds like a young punk and arrogant.; July 12, 2007 8:55 PM
Anonymous said...: How much you made? 20 %? When are you coming in again? When it drops 10% or below 20%? When it drops whatever you still hold will drop. So what happened? Of course it is your money.
Who cares.
The guy is trying to teach you some lessons on investment. If you don't heed his advice that is your business. Of course no right or wrong. Hope lady luck is on your side; July 12, 2007 8:58 PM
Anonymous said...: You may have seen 15 years of the market but has your knowledge changed for the better and made you a little bit wiser. You know if your experience repeated 15 times or 15 years it is just one experience.; July 12, 2007 9:05 PM
Thomas Phua's Blog said...: I am worth a little over $3 million now having seen last 15 years.; July 18, 2007 1:35 PM