Golden Rule

What Should I Do?

If I were to put it simply, what needs to be done is this.

At the height of euphoria, rebalance to your asset allocation.

At the depth of despair/despondency, rebalance to your asset allocation.

That’s all.

No, you will not be able to time it perfectly, but just following your asset allocation, you will reduce your portfolio pain a great deal.

Does that make sense?

Asset Allocation

Debt Allocation : Your Current Age

Equity Allocation : 100 - Debt Allocation

Re-balancing Portfolio

The re-balancing of funds between debt and equity is triggered by two use-cases.

a. Breach in desired asset allocation by 5%

b. Age change triggers new asset-allocation

c. Use DMA for rebalance

Example 20-DMA and 200-DMA

If 20-DMA breaks below 200-DMA, bearish trend - Rebalance Equity to Debt

If 20-DMA breaks above 200-DMA, bullish trend - Rebalance Debt to Equity

Effort on Money Management

Kuvera Insights for New Investor - 1:2yrs old

- Bear in 1st 5yrs better is better than next 5yrs better cycle, for returns

- Asset Allocation contribute to 90%, securities pick & timing to 10%, spend effort accordingly

https://youtu.be/khL9LXLrndI