To my dearest friends and family,
I am proudly announced that my http://www.chaishuan.blogspot.com is now transfer to http://www.chaishuan.com.
Thank you very much for reading my blogs and leave comments. And, I will share more about life, investment, traveling, foods & drinks and photos to all of you. So, please continue your support to me! I love you all, hugs~ ^^
Live in the PRESENT and i believe LOVE, is the beginning of everything. I hope all of you enjoy it and love it. ^ ^
With Love,
Shuan =)
30 July 2010
Why Average Investors Earn Below Average Market Returns
Investor Overreactions Cause Poor Historical Returns By Dana Anspach, About.com Guide
Dalbar Inc. is a company which studies investor behavior and analyzes investor market returns. The results of their research consistently show that the average investor earns below average returns.
For the twenty years ending 12/31/2008 the S&P 500 Index averaged 8.35% a year. A pretty attractive historical return. The average equity fund investor earned a market return of only 1.87%.
Why is this?
Investor Behavior Causes Poor Market Returns
Study after study shows when the stock market goes up, people pour money into equity mutual funds, and when the market goes down, they pull money out. During bear markets, they pull even more money out. They continuously buy high and sell low. They chase trends, focused on what is happening right now.
This irrational behavior causes their market returns to be substantially less than historical stock market returns.
What would cause investors to exhibit such poor judgment? After all, at an 8% return, their money would double every nine years. Rather than chasing performance, an investor could simply have bought a single index fund, and earned significantly higher returns.
The problem is the human reaction, to good news or to bad news, is to overreact. This emotional reaction causes illogical investment decisions. This tendency to overreact can become even greater during times of personal uncertainty; near retirement, for example.
4 Truths To Follow To Increase Your Market Returns
When it comes to your investments, if you feel your emotions are getting the best of you, come back to the following truths:
1. Do nothing. A conscious and thoughtful decision to do nothing is still a form of action.
2. Your money is like soap. To quote Gene Fama Jr., a famed economist, “Your money is like soap. The more you handle it, the less you’ll have.”
3. Never sell equities in a down market. If your funds are allocated correctly, you should never have a need to sell equities during a down market cycle. This holds true even if you are taking income. Just as you wouldn’t run out and put a for sale sign on your home when the housing market turns south, don’t be rash to sell equities when the stock market goes through a bear cycle. Wait it out.
4. Science works. It’s been academically proven that a disciplined approach to investing delivers higher market returns. Yeah, it’s boring; but it works.
Start following these truths now and become one of the few investors earning above average market returns.
(Source: http://moneyover55.about.com/od/howtoinvest/a/averageinvestor.htm?p=1)
Dalbar Inc. is a company which studies investor behavior and analyzes investor market returns. The results of their research consistently show that the average investor earns below average returns.
For the twenty years ending 12/31/2008 the S&P 500 Index averaged 8.35% a year. A pretty attractive historical return. The average equity fund investor earned a market return of only 1.87%.
Why is this?
Investor Behavior Causes Poor Market Returns
Study after study shows when the stock market goes up, people pour money into equity mutual funds, and when the market goes down, they pull money out. During bear markets, they pull even more money out. They continuously buy high and sell low. They chase trends, focused on what is happening right now.
This irrational behavior causes their market returns to be substantially less than historical stock market returns.
What would cause investors to exhibit such poor judgment? After all, at an 8% return, their money would double every nine years. Rather than chasing performance, an investor could simply have bought a single index fund, and earned significantly higher returns.
The problem is the human reaction, to good news or to bad news, is to overreact. This emotional reaction causes illogical investment decisions. This tendency to overreact can become even greater during times of personal uncertainty; near retirement, for example.
4 Truths To Follow To Increase Your Market Returns
When it comes to your investments, if you feel your emotions are getting the best of you, come back to the following truths:
1. Do nothing. A conscious and thoughtful decision to do nothing is still a form of action.
2. Your money is like soap. To quote Gene Fama Jr., a famed economist, “Your money is like soap. The more you handle it, the less you’ll have.”
3. Never sell equities in a down market. If your funds are allocated correctly, you should never have a need to sell equities during a down market cycle. This holds true even if you are taking income. Just as you wouldn’t run out and put a for sale sign on your home when the housing market turns south, don’t be rash to sell equities when the stock market goes through a bear cycle. Wait it out.
4. Science works. It’s been academically proven that a disciplined approach to investing delivers higher market returns. Yeah, it’s boring; but it works.
Start following these truths now and become one of the few investors earning above average market returns.
(Source: http://moneyover55.about.com/od/howtoinvest/a/averageinvestor.htm?p=1)
The POWER of Regular Savings
Hello everyone! ^^ I am here to share the Power of Regular Savings.
Please ask yourself, “Do you have a proper and clear financial plan? Can you retire? Can you afford the living costs & expenses of 22 years after you retiring (Assume your life expectancy is 77 years old, and you are “retire” on 55 years old according to Malaysian Employment Law)?”
Let’s me show you some facts:
• People are living longer- Life expectancy for woman is 83, and man is 77
• They are marrying and having children later- At retirement age, the children are still in school or university
• 70% of retirees use up all their EPF money within 3 years after retiring
• Inflation rate is 4% in urban areas
• 3 meals a day at RM20 now may cost RM64 in 20 years
• Average price of food stuff has increased by 20.81%
• Medical inflation is 15% each year
• Most Malaysians do not have Financial Security
The principles of SAVING
It’s not How Much, but Where & How you save is important
so HOW?
•Put in (save) money regularly at a fixed period of time with a fixed amount
•Applying Ringgit Cost Averaging (RCA) to take advantages of market volatility
•Medium to Long Term
WHY?
Buy more units when prices are low. Fewer units when prices are high. Ultimately, you will achieve a lower average cost which translates into a higher return when the market recovers.
While there can be no assurance that any investment strategy will prevent losses, RCA will mitigate the risk
of making a single large investment at a time when the market is near its high.
WHERE?
Public Mutual Berhad (“PMB”)
• The largest private unit trust company in Malaysia
• Manage more than 70 funds with total Net Asset Value (NAV) of more than RM35.9 billion
• Market Leader with market share of 40.7%
• More than 2,320,000 account holders
• Wholly-owned subsidiary of Public Bank
WHO can help you?
I am the Unit Trust Consultant of PMB and you are welcome to contact me via my email:
chaishuan@hotmail.com, or msn: cozzmint@hotmail.com if you want to know more about this.
So, Let’s Create Early Accumulate Regularly and enjoy the Power of Regular Savings if you wish for a better future!
I wish everyone a very Happy Investing =)
(Reference: Sunday Star and July 2010 Bulletin)
Please ask yourself, “Do you have a proper and clear financial plan? Can you retire? Can you afford the living costs & expenses of 22 years after you retiring (Assume your life expectancy is 77 years old, and you are “retire” on 55 years old according to Malaysian Employment Law)?”
Let’s me show you some facts:
• People are living longer- Life expectancy for woman is 83, and man is 77
• They are marrying and having children later- At retirement age, the children are still in school or university
• 70% of retirees use up all their EPF money within 3 years after retiring
• Inflation rate is 4% in urban areas
• 3 meals a day at RM20 now may cost RM64 in 20 years
• Average price of food stuff has increased by 20.81%
• Medical inflation is 15% each year
• Most Malaysians do not have Financial Security
The principles of SAVING
It’s not How Much, but Where & How you save is important
so HOW?
•Put in (save) money regularly at a fixed period of time with a fixed amount
•Applying Ringgit Cost Averaging (RCA) to take advantages of market volatility
•Medium to Long Term
WHY?
Buy more units when prices are low. Fewer units when prices are high. Ultimately, you will achieve a lower average cost which translates into a higher return when the market recovers.
While there can be no assurance that any investment strategy will prevent losses, RCA will mitigate the risk
of making a single large investment at a time when the market is near its high.
WHERE?
Public Mutual Berhad (“PMB”)
• The largest private unit trust company in Malaysia
• Manage more than 70 funds with total Net Asset Value (NAV) of more than RM35.9 billion
• Market Leader with market share of 40.7%
• More than 2,320,000 account holders
• Wholly-owned subsidiary of Public Bank
WHO can help you?
I am the Unit Trust Consultant of PMB and you are welcome to contact me via my email:
chaishuan@hotmail.com, or msn: cozzmint@hotmail.com if you want to know more about this.
So, Let’s Create Early Accumulate Regularly and enjoy the Power of Regular Savings if you wish for a better future!
I wish everyone a very Happy Investing =)
(Reference: Sunday Star and July 2010 Bulletin)
27 July 2010
6月27日午。寿司王
7月27日午。好天气
愉快的星期二午后，来寿司王吃我最爱的寿司，有好喝的绿茶，有好笑的人，有好笑的童年故事，一个非常轻松，好玩的Tuesday，开心开心！感谢他！！哈哈！！
寿司王的新产品登场：
1. 炸芋头+蟹肉, 这个好好吃！
2. Inari+蟹肉, 这个也好吃！
3. 三文鱼寿司卷，这就普通了一点。
还有几样新的，下次再试！^ ^
26 July 2010
a sunday at serikin & bau
Another hot Sunday morning at Serikin...
walk and shop around...
testing on a very small and cute stool :p
Nice cloth with local style ^^
World cup?
Haha, testing on the helmet ^^
After Serikin, we went to Bau...
Temple @ Bau
Shuan @ Bau
Finally, we had lunch before go back... =)
*Especially thanks to my dearest simtzongyih (http://www.tzongyih.net/) for the photos. =)
*Especially thanks to my dearest simtzongyih (http://www.tzongyih.net/) for the photos. =)
24 July 2010
SABATI Gala Nite
SABATI Gala Nite
A wonderful and fantastic night with the great international dance performances. Thank you very much for inviting me for the dinner! I enjoy so much! ^^
23JULY2010 | Four Points by Sheraton
Britney's school
My first time to fetch my sweetie, Britney from school. She is so happy and surprise when see me there.. ^^
Do you still remember we learned this when we are primary school too?
And do you still practise it?
=)
23 July 2010
18 July 2010
17 July 2010
16 July 2010
负面频率很高的一个半小时
昨晚啊，我就陪了沈宗毅看‘僵尸先生’，真搞不懂他干嘛会爱看这些。。。
我好久没看这类的电影了，胆也缩了也，没有了‘免疫力’。。 明知道这没什么，却从头怕到尾，一个半小时被负面频率包围着，让我深深明白被负面频率包围是多么的可怕啊！
看完后，我赶紧去掉负面频率，看看充满正面频率的书，哈哈，这让我好很多，也一觉睡到天亮。。^ ^
沈宗毅，下次，你要看就自己看好了！ 哈哈～ ^ ^
我好久没看这类的电影了，胆也缩了也，没有了‘免疫力’。。 明知道这没什么，却从头怕到尾，一个半小时被负面频率包围着，让我深深明白被负面频率包围是多么的可怕啊！
看完后，我赶紧去掉负面频率，看看充满正面频率的书，哈哈，这让我好很多，也一觉睡到天亮。。^ ^
沈宗毅，下次，你要看就自己看好了！ 哈哈～ ^ ^
15 July 2010
Holiday @ LANGKAWI . 25JUNE2010
Second day, we are at Langkawi~ =)
To view more pictures, please visit http://www.chaishuan.com/ =)
11 July 2010
Holiday @ PENANG . 24JUNE2010
A long planned and expected holiday is finally here! A trip that belongs to 5 girl friends to Penang & Langkawi! =) Here we go...
We stay here: Old Penang Guesthouse @ Love Lane
Our first day breakfast > Indian Mee Goreng @ Bangkok Lane
We are @ Wat Chayamangkalaram (Reclining Buddha)
We are @ Dharmikarama Burmese Temple
We are @ Bukit Bendera
We are @ Kek Lok Si
We are @ Butterfly Farm
We are @ Gurney Plaza
We are @ Gurney Drive
We are heading to Gurney Drive Hawker Stalls
We are @ Nando,Gurney Plaza
We are @ Batu Ferringgi Night Market
Our first day trip ends here.. 24June2010 =)
*For more details & nice pictures, please visit me @ http:www.chaishuan.com . Thank You & Happy Day to you~ ! ^^
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