Asked by Anonymous

If I have $10,000 now, how would you suggest if I invest it with AutoWealth? Do I go all in?

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  • Isabella Jo
    Isabella Jo
    Level 4. Prodigy
    Answered on 21 Jul 2018

    I believe in not putting all your eggs in one basket. Maybe put half and the remaining in other instrument. Once you are confident with its performance, u can put more in that investment vehicle.

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  • Tai Zhi
    Tai Zhi
    Level 3. Wonderkid
    Answered on 07 Jul 2018

    There are some financial literature out there regarding whether an investor should invest all-in or time-diversify his/her investments over time.

    Empirically, financial markets generally appreciates over time. Therefore, an investor faces material opportunity cost for not investing his/her full investible assets. The risk for an investor investing all-in is the small probability of experiencing a market correction immediately thereafter.

    On balance, the benefits of investing all-in outweigh the risks. Therefore, the most rational, calculated investment decision will be to invest all-in.

    That said, it also depends how well you can manage your emotions psychologically if in case the risks does materialise despite you taking a calculated rational investment decision.

    If you feel more comfortable, you may want to commit 50% at the start and commit the remaining 50% over 2-3 quarters to mitigate the probability of meeting a market correction shortly after the initial 50%.

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