Thursday, December 18, 2008

Portfolio Update December 2008

YTD Returns : -10.44%

The market seems to have reach a bottom since Oct '08 as the portfolio value is not going down as fast as before.

However, hedge funds I owned have all suspended redemption till Jan/Feb '09. So, Jan/Feb '09 should set the trend for next year. If hedge fund redemption continue, I'm sure you will see more selling in the market.

This downturn have left me to re-examine my strategy. My intended allocation was to be 50% equities/alternatives and 50% in bonds. However, should I even be 50% in equities and alternatives as an asset class since I would be very comfortable receiving all the coupons from the bonds. The coupons payment would put the portfolio in the highest income bracket if it should be taxable as an individual. So, why am I in equities at all?? :-s

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