The 5% rule to retirement planning

THE question we have heard the most from our investors in the first quarter of this year has been "Where is the market heading?"

Over the past few months, global equity markets went through a correction amid rising concerns of a trade war between the two largest economies, the US and China. The MSCI APAC ex-Japan Index posted a return of -0.44 per cent for Q1 2018, while the MSCI HK and MSCI Japan indices saw a further downturn, resulting in -1.01 per cent and -4.81 per cent returns respectively, over the same period.

To truthfully answer our investors, we believe no one can make a better prediction than by tossing a coin. However, that does not mean that investors cannot capitalise on the opportunities in the current market. Patient value investors will see a payoff by holding a diversified portfolio and buying into undervalued stocks, which will surface as hidden gems in bad times.