The Big Bear

[Temperament]

Sometimes, i did it even in very severed Bear market. Especially at the time i chickened out from injecting "fresh fund". i wish i had not chickened out like when i were much younger. Then this last "cycle" i would have profited at least 2 to 3 times more. Getting old is "no fun" investing in stock market. Can't afford to take more risk when we should. Kiasi liu?

Be "Kiasi" is a blessing in value investment, applies to both old and young investors

With advance in age, i hope i remain as "kiasi" if not more, but able to spot perceived risk over real risk, thus avoid missing real gem

i mean i started to invest in "Bonds" rather that all my investible fund in stocks. By the way, my "Bonds" investment is actually CPF. Actually i could have used all my CPF's investible money into stocks during the last severe Bear Market. Then like i said i used to do it when i were much younger. So i made 2 to 3 times more during those times. Now it seems protection of capital is more important then growth. That's the classic textbook's advice.
What say you?

What i say is to put all investible money into stocks during the last severe bear market (at right stock and price) is less risky than putting them into bond (in term of capital preservation due to inflation over long term)

Of course, we all invest and take risks because of inflation.
We all want the highest return with out the accompanied higher risk.
But there is no such thing as higher return with lower risk. (It may be possible if asset allocation is done correctly, i think.)

If we are not careful, same return or even lower return or even zero return with all the highest risk possible, which we may not be able to see at the time of our purchase; like it happened to many people during the last "minibond fiasco".

But putting all the eggs in one basket (stock) is usually recommended for younger investors or beginners, (which i have done during my hay days) - As beginners, their spare investible capital is little and they still have many more years fishing to replenish their spare capital in case they lose some or all of it.

And CPF as Bond is one of the "BEST BOND" in the world when you reach 55. Especially now, when Bank's INT. Rate is as low as almost 0.1% for some banks. Besides, you still can deploy this fund anytime when opportunity arises. Meanwhile enjoying (almost guaranteed) at least 2.5 % interest rate.
i think it's something like best of both worlds sacrificing maybe a better return from the stock market which you can never be sure, but 2.5% return from CPF's Board you can be sured in the short term - And most important, you can sleep better at night unless the GOV of the day defaults. MHO.

[VestedInterest]

If you truly believed in value-investing, you must believe in the buy and hold strategy. Therefore, you would not want to be too preoccupied with market timing. We know for sure that a bear market will come sooner or later but we just do not know when. It is always good to keep some amount of cash in case the opportunity presents itself and to invest only what we can do without in times of emergencies... but if you are already invested in stocks, you're probably better off just holding it or at most do some spring cleaning. Just as sure as there will be a downturn, there will also be an upturn. Life occurs in cycles. Except that the cycles for the market are getting shorter. If and when the bear market comes, sit tight and wait for the storm to pass which it surely will, unless Armageddon happens. The bear market is a test of one's patience, resilience and courage. Another point about investing and it is a paradox- we must be prepared to lose everything in order to gain even more. Life itself is a risky undertaking. But what is life without risks.

[Temperament]

"to lose everything in order to gain even more."
Unquote:-
This is like one of the Christian's teaching. Unless your old self dies you will not be born again. You will not have a new self. Or common sense - unless your old habit dies, you will not succeed in your new habit.
So unless you have experienced and survived at least 2 Bear Markets, you will not be able to see (last) another one, another one,.............. throughout your whole life on Earth. MHO.
Amen.

[arthur]

"to lose everything in order to gain even more."
Unquote:-
This is like one of the Christian's teaching. Unless your old self dies you will not be born again. You will not have a new self. Or common sense - unless your old habit dies, you will not succeed in your new habit.
So unless you have experienced and survived at least 2 Bear Markets, you will not be able to see (last) another one, another one,.............. throughout your whole life on Earth. MHO.
Amen.

Amen, Pastor Temperament.

[Temperament]

"to lose everything in order to gain even more."
Unquote:-
This is like one of the Christian's teaching. Unless your old self dies you will not be born again. You will not have a new self. Or common sense - unless your old habit dies, you will not succeed in your new habit.
So unless you have experienced and survived at least 2 Bear Markets, you will not be able to see (last) another one, another one,.............. throughout your whole life on Earth. MHO.
Amen.

Amen, Pastor Temperament.

Oh no! i just mean all religions should be based on common sense too!
So is everything in life. We have to try harder to look for if we can't see where common sense is?
But we all know, sometimes it seems we all have different angle of sight of common sense.
Amen.