The decision is based on an arbitrary assessment that the STI is just poorly diversified. Poorly diversified is good enough a reason that 20 percent is still way too much a risk to take a punt on mean reversion and FX stability, on top of already mega amounts of SG assets I hold such as an abode.
That even if STI beats the VWRA, will still leave me thinking that because of its historicL poor risk adjusted returns will be left in the dust over time vs VWRA. And hence unlikely for me to persists with STI outperformance.
I am confident to stick with VWRA even in a crash and will continue dca along. It is just easier for the mind and discipline.
Every time I buy SG stocks, I always feel it’s a mistake no matter what good reason there is, will still not be as good as a peace of mind.
And as we know, the best plan is one u can keep. Simplicity works for me.
That even if STI beats the VWRA, will still leave me thinking that because of its historicL poor risk adjusted returns will be left in the dust over time vs VWRA. And hence unlikely for me to persists with STI outperformance.
I am confident to stick with VWRA even in a crash and will continue dca along. It is just easier for the mind and discipline.
Every time I buy SG stocks, I always feel it’s a mistake no matter what good reason there is, will still not be as good as a peace of mind.
And as we know, the best plan is one u can keep. Simplicity works for me.
OK, but are you making a reallocation decision because a very few -- and it is a very few -- stocks outside SGX-listed stocks are currently soaring?.
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