The 3 Most Important Charts On Investing

We know that market move in cycles and in upwards trend in the long run, for the past 200 years. If you stretch the investment time horizon to a much longer period, you will see that every crisis was just a "blip"  in time.

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Every crisis, be it caused by war, oil crisis, financial (sub-prime) or even current crisis of COVID 19 will pass eventually. Some companies may collapse during the crisis (even a 100 years old company), therefore it is important to have a diversified portfolio with fundamentally strong companies.

Three Most Important Charts On Investing

As I blogged before "Are Stock Returns Normally Distributed?" 

We know that stock market returns are not perfectly in "normal distribution " but skewed towards +ve returns in the long run.

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Time In the Market vs Timing The Market

Of course, if one can really "time the market" well and sell in early 2020 and buy back eventually after 23 March when the market hit bottom, the return will be exceptionally good. But in reality, I think not many people would be able to do that due to our emotional biases of fear and greed.

But I think you will be fine even stayed the course during this pandemic and keep it for next 5-10 years, provided the stocks you picked does not go "kaput" like my big mistake of "Eagle HT".

Since STI is still close to -1SD, the chances of winning the market are much higher if you were to invest now and keep it for more than 5 years time.

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If you are betting stock on a daily basis, the chances of win/loss are almost equal at 52%, like playing "big/ small" in a casino. The chances of winning the market increase when you invest more than 5 years.  The stock market is going to be very volatile during the pandemic time and if you are not prepared to hold your stocks for more than 5 years, maybe investing in the stock market is not for you at this point of time.

Black Swan (Crisis) Tend To Follow By White Swan ( Opportunities)

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I think this chart speaks for itself perfectly that every crisis will follow by a strong rebound, will it be different this time around?

What Happens To The Stock Market After A Recession? <source:>

Ready to quarantine the losses

"According to Dimensional, in the one, three, and five years following a correction up to a bear market (20% decline from recent highs), the stock market has averaged an annualized return of nearly 10% across all time periods."

As mentioned earlier, investing during a crisis is tough and one will need to have a very strong emotion to stay the course, looking at the losses of our portfolio from time to time. Stocks investing may not be suitable for everyone if you are losing sleep over your investment, it might be the time for you to reconsider your portfolio allocation, base on your risk tolerance.

Cheers !


" Quote Of The Day "

"Discipline and patience are two traits needed by individuals who decide to invest in the stock market. Market stability is not always a given, and there will be periods when the market may be volatile. This happens particularly in the event of a major disaster or crisis..."


  1. Strong holders can choose to stay but weak holders may be forced to stay out or get wipe out.

    1. Yah, depends on our holding power and worse still if we are using " leverage" or margin to invest.....

  2. Hi STE. Good to see your posting again. I am more kiasi so I used 10Y instead or 5Y. LOL.

    1. Hi Henry,
      Thanks for the comments, Yah... sometimes " kiasi" is good to avoid so many "minefield" or "value trap" in investing ....Cheers ! :D

  3. Hi! Gone all quiet! Hope you are keeping well
    Best wishes!

    1. Hi garudadri,

      Thanks for the comment ,I am fine and hope all is well with you too. Yah, been quiet some time not writing any blog for almost a month already, ..time flies. During this period , as usual , I just doing more exercise , reading and watching movies...:D ..stay safe and stay healthy.
      Market continue to be very volatile , can't do much ...I also not doing much changes on my portfolio, stay the course and just collecting the dividend. Guess this is a "waiting game " ...

      I am still counting on total dividend to be collected in 3rd Qtr .. shall update my blog once all the companies announce their result, although some been suspended or choice under current economic situation... all have to face the " shrinking panadol " .

      Cheers ...


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