2020 - Strategy
We wish all our readers Merry Christmas and a Great New Year 2020. Our next post shall be on 6 January 2020. Asset allocation In view of the adverse risk reward ratio and growing divergence between bond and equity yields, I shall scale back my strategic equity allocation to 50% from 60% presently. The strategic asset allocation now stands at 50% Equity; 25% Gold and 25% Debt. (a) The entire equity allocation shall remain invested. (b) Gold allocation will be mostly invested in gold bonds. (c) For now, the debt allocation will be 75% in accrual products and 25% in long duration. However, if benchmark yields rise to 7.5% or above, I shall move the entire allocation to to longer duration. My target return for overall financial asset portfolio for 2019 would be ~8%. Equity investment strategy I would continue to focus on a mix of large and mid cap stocks, with decent solvenc...