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Showing posts from December, 2021

The Psychological Impact Of Maximum Drawdown (MDD) on Portfolio Management

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 I suppose everyone is still in the holiday mood after celebrating Christmas with our loved one and about to countdown the arrival of 2022 , a new chapter or year in our journey of investment and I will try to keep this blog post short. There is one very important topic I would like to highlight here before the closing of 2021, i.e “ The Psychological Impact Of Maximum Drawdown (MDD) on Portfolio Management." For every investor, I think drawdown should be one of the most important topics to understand when you start to learn about stock investing. Even before talking about gains or returns you expect from your investment, one should really and clearly think about “how much I can stand or “tahan ” to lose from the investment? what are my risk tolerance and maximum drawdown I could stand when looking at my portfolio in RED , especially the psychological impact of losing sleep or stress? What Is a Drawdown? <Source: Investopedia.com> KEY TAKEAWAYS A drawdown refers to how...

4th Qtr 2021 : Portfolio & Dividend Update

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 Time flies, we are now at end of 4th Qtr 2021 and about to enter a new chapter in 2022. Same as life, the market is such unpredictable, while we are hoping to return to a more normal life with more VTLs ( Vaccinated Travel Lane) and opening up of economic activities, suddenly a new virus variant named   "Omicron " hit us, hard and furious, with so many countries imposing travelling ban from South Africa and it's neighbouring countries. World scientists are worried about this new variant because of so many mutations it has vs previous one, it seems that we want to "live with the virus" and "the virus also want to live with us"  ( most of us), from the initial finding, that it seems to be more transmissible. Until the next 2-3 weeks where we will have more data or finding coming out, we are not sure if this new variant ( Omicron) will be more "virulent " and cause more severe illness for those being infected and how effective current vaccine...
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