How to prepare for the next recession / market crash?
Many investors want to pick the best bonds, best stocks or best fund to invest but they have forgotten about asset allocation.
Asset allocation accounts for bulk of portfolio's long term performance.
We select a group of diverse assets that can complement each other well.
We distribute the risk across the assets. Assets with higher risk will get a lower allocation. Assets with lower risk will get a higher allocation.
Using a diversified leverage portfolio we have built a portfolio makes up of growth stocks, short term bonds, long term bonds, gold, real estate (REITs) with specific weightage. We had done backtest for the portfolio from the period 2005 to 2019.
Here are the backtest result from 2005 to 2019:
• This portfolio only lose money on 2 years: 2008 and 2018. All other years are profitable.
• There are 8 years whereby the portfolio had delivered more than 10% performance.
• The portfolio outperformed when stocks goes down.
• The portfolio had lost only 11.7% in 2008 where subpripopme crisis happened.
Can we share with you this strategy and how we can implement the strategy into your portfolio?
There are many strategies proposed by various financial advisers. But have those strategies been backtested and proven to be effective?
If your idea cant even work in the past like you think it should, then on what basis do you think it will work in the future?
In this case, our strategy had been backtested and proven to benefit an investment portfolio.
Asset allocation accounts for bulk of portfolio's long term performance.
We select a group of diverse assets that can complement each other well.
We distribute the risk across the assets. Assets with higher risk will get a lower allocation. Assets with lower risk will get a higher allocation.
Using a diversified leverage portfolio we have built a portfolio makes up of growth stocks, short term bonds, long term bonds, gold, real estate (REITs) with specific weightage. We had done backtest for the portfolio from the period 2005 to 2019.
Here are the backtest result from 2005 to 2019:
• This portfolio only lose money on 2 years: 2008 and 2018. All other years are profitable.
• There are 8 years whereby the portfolio had delivered more than 10% performance.
• The portfolio outperformed when stocks goes down.
• The portfolio had lost only 11.7% in 2008 where subpripopme crisis happened.
Can we share with you this strategy and how we can implement the strategy into your portfolio?
There are many strategies proposed by various financial advisers. But have those strategies been backtested and proven to be effective?
If your idea cant even work in the past like you think it should, then on what basis do you think it will work in the future?
In this case, our strategy had been backtested and proven to benefit an investment portfolio.
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