facebookIf you have $10,000 to invest, how would you allocate your portfolio? - Seedly

Anonymous

28 Jun 2020

General Investing

If you have $10,000 to invest, how would you allocate your portfolio?

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You missed the big boat actually. Which falls on the 20th Mar. Tesla was at 300+, now trading at 800+. NFLX was at 200, nw trading at 450-ish. SHOP, 200,nw 700++. Even Top Glove in Bursa was running mad upwards! Massive massive gains in less than 3 weeks.

Nonetheless, it shows how profitable it can be being in Wall St. Remember, the stock market, is not the economy. Its just part of the economy. Hence, unemployment, less spending etc doesnt really affect the stock market. Dont time the market but the time IN the market.

Invest wisely in US stocks. Now is the best time. Find the dips, exhaustion in the bull run, learn and plot the (major) structure levels, find an entry point and then pull the buy button.

Portfolio wise, you may consider splitting into categories. I wouldn't breakdown the percentage, which you should come up with according to your risk level. Break it up into consumer goods, pharmaceutical, technology etc.

Saxo is a good trading platform.

Oh, you might want to consider allocating some of the $10k doing options too. Somehow or rather, it can sure fire up some decent and quick returns in a short time! ;)

Hope my 2cents help.

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Lin Yun Heng

19 May 2020

Senior Analyst at Delphi

40% to REITs, 40% to Blue Chips, 20% to Small Cap Growth Stocks

Another way will be 50% Tech ETF, 50$ total stock market ETF

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Can I check how do we trade S&P 500 in SG?​​​

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It depends on your risk tolerance, age, and some other factors. But to generalize the answer, this is what I'd do in the CURRENT market situation

  1. Hoard the cash for now, the market is going very irrational at the moment (unemployment is rising, trade volume is dropping, interest is dropping, and the stock market is RISING?????). it doesn't take a genius to know that now is not the right time to invest

  2. After some correction, perhaps market drop a further 10% - 20% (I don't know when, but perhaps a few months later), then I will invest 50% of my money and keep the remaining 50%

  3. I will buy in (lump sum) some countries and sector ETF such as SPDR® S&P 500 ETF Trust (SPY), iShares MSCI China ETF (MCHI), Vanguard FTSE Emerging Markets ETF (VWO), Vanguard REIT ETF (VNQ), Fidelity® MSCI Information Tech ETF (FTEC). 10% each with the 50%.

  4. The remaining 50% I will use it for Dollar Cost Average every month ($1,000 every month for 5 months). However, with just $1,000, the brokerage will be insane hence DO NOT DCA on your brokerage accounts such as DBS Vickers, Saxi Capital etc. I'd use Regular Savings Plan (You can choose from OCBC, POSB, POEMS or FSMOne). Personally, I'd go with FSMOne RSP due to their low fee. I will invest $250 each month into iShares Core S&P 500 ETF (IVV), Fidelity® MSCI Information Tech ETF (FTEC), Vanguard FTSE Emerging Markets ETF (VWO) and Invesco China Technology ETF (CQQQ), that makes up to a total of $1,000 every month. Continue doing this for 5 months until you invested your remaining $5,000.

  5. Depending on market condition and what you plan to do and you financial situation, you can continue investing the lump sum to buy stocks you like (Zoom, Amazon, Facebook, DBS, whatever) or continue your DCA into FSMOne RSP, or stop investing altogether.

That sums up what I would do if I have $10,000 to invest, cheers!

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Hannah Foo

17 May 2020

Manager at JTC

I will go for something with higher returns (as compared to a savings account). 5k into an ETF, and ...

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