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I have been advocating the importance of planning – especially portfolio planning for investment. http://www.wilfredling.com/content/view/230/31/ http://www.wilfredling.com/content/view/211/31/ http://www.wilfredling.com/content/view/181/31/ http://www.wilfredling.com/content/view/161/31/ http://www.wilfredling.com/content/view/117/31/ http://www.wilfredling.com/content/view/108/31/
But very few people bothered to listen and as a result the losses they incurred are complete devastation. While the MSCI World returned about -23.1% over 1 year many seem to incur more than 50% losses. So serious are the losses we really wonder what they invest in – how to loss so much money when the market losses were less than half of that? The reason is due to the lack of portfolio planning. I spoke to some people about portfolio planning during the bull run and very few people understood what it means. They say portfolio planning is just for people who don’t understand the market. Well, their arrogance says it all. But portfolio planning is not merely a simple exercise. It needs to be on-going through regular review. Recently I am shock to discover that good funds are majority underperforming the market. Since the equity market is negative, underperformance means that the investor is suffering greater losses. This is terrible. |
