Ching Poy Seng

Investors need to know when to be on the offensive and when to be defensive. One way of doing so is by using the "trend following" approach.

Protecting capital in a market downturn

One way to do so is to employ trend following, as did eminent investors Paul Tudor Jones and George Soros

Alphabet, Amazon, Meta, and Microsoft have together spent about US$600 billion on AI since 2020. So far, none of these companies has made money on AI yet.

Can transformative businesses such as AI reward most investors over time?

Previous instances show it is extremely hard to pick the long-term winners

When there is no bear left, it means that the bulls are thoroughly in control of the market and investors are no longer independent and diverse. As a result, markets tend to get prices wrong when investors go in a herd – as in a bubble.
WEALTH & INVESTING

Investing in a bubble

Should investors just sidestep the bubble, short it, or ride it with or without safety belts?

The question for investors is whether they want to grow their money quickly or slowly, while bearing in mind the degree of difficulty and chances of success for each approach.

Taking the emotions out of investing

Managing investors’ emotions and behaviour has an outsized impact on their long-term return

Despite the warning in 1996 by Alan Greenspan, then chairman of the Federal Reserve, that the US stock market could be overvalued, the market rallied strongly till early 2000.

Trend following amid irrational exuberance

It can help investors to protect their capital during market downturns and ensure that they can also stick to their portfolios through thick and thin

The annualised real returns for US stocks are about 7 per cent from 1928 to 2021, according to Prof Aswath Damodaran of New York University.
WEALTH & INVESTING

Combining ‘value investing’ and ‘trend following’ strategies to beat market returns?

It can help investors to achieve good returns with substantially lower losses. It might even beat the market if the strategy is implemented well and the market environment is cooperative

“Trend following” not only helps investors to stay and profit from the rising trend, but also to reduce losses, especially in a severe decline.
WEALTH & INVESTING

Trend following versus Buy-and-hold

At the end of the day, investors would need to choose between a higher level of wealth or a lower drawdown

Warren Buffett, chairman and chief executive officer of Berkshire Hathaway., during the company's annual meeting in Omaha, Nebraska, in 2022. Berkshire's annual return was 9.34 per cent from January 2002 to December 2021.
WEALTH & INVESTING

Learning from the world’s greatest investors on avoiding investment scams

IT IS sad to hear about more and more people falling into investment scams. The misfortunes have led to billions of dollars being lost, and hundreds of families ruined.