Aboi's Updates For Feb\Mar 2013

Here's the link for the previous month's market sense: Aboi's Updates for Jan 2013

For those who find it hard to follow I suggest reading through my previous posting on how I am using technical indicators as a trend seeker.

1. First Attempt on Tech Analysis Part 1
2. First Attempt on Tech Analysis Part 2

I was SPOT ON last month for a correction to hit Bursa. What caught me BY SURPRISE as well as to analysts is the DEGREE of correction. Bursa lost a whopping 50 points in a few days while I was only anticipating it to hold around the support line of 1670 wooohaaa. It was indeed a VSA type shakeout to panic investors and traders out of their perfectly good positions from the market. I am NOT DETERRED. Despite Bursa losing points, my portfolio managed to grow by RM2000 for the past month. For the coming 4-6 weeks with General Elections looming I'll pay more attention to the support line of 1600 as well as the new resistance line of 1655. IMO Bursa has potential to climb a little more for the coming weeks with ALL indicators showing TURNAROUND. Remember the feel good factor!

Notes

*Revised benchmark to be more accurate to reflect my actual portfolio composition. Equities 50%, Mixed Assets 15%, REITs 10%, Bonds 5% and Cash 20%.
*Added TWRR for each counter/fund. My targets for returns p.a. Equities type 12%, Mixed Assets 8%, REITs 6%, Bonds 5% and 3.75% for cash.
*As such the overall target p.a. to be met would at least be 8.8%.

Comments

#1 With some of the proceeds from selling JOBST, I've added two new funds to the list. Asia Quantum (Equity fund) and Dynamic Bond (Bond fund).
#2 Portfolio target for third year @ RM128k for April 2013 and fourth year @ RM140k for April 2014. Revised in accordance to actual portfolio composition.

Yes this is a BIG CHANGE in direction. With 8.8% RM100k can only grow to RM1.255 million in 30 years. One cannot strike to have 15% per annum to grow to RM5 million in 30 years if the portfolio is NO LONGER purely equities. Though RM1.25 million may not seem to be enough for retirement, we have other sources of funds e.g. EPF, endowment/surrender value policies, other assets e.g. properties. I placed a lot of thought in this for the last 2 weeks. It is difficult to have purely equities in one's portfolio yet alone risky as we age older. Should I change my blog description? I don't know yet.

Disclaimer: The reports, analysis and recommendations in this blog are solely my personal views. I do not link to any investment body or company. As such, I will not be responsible of any of your investment decision. Consult your investment adviser or come to your own conclusions before making any investment decision.