Indeed, the primary objective of this weekly column is to simplify the often-complex relationships between macroeconomic factors, public policies and valuation methodologies so that you, our readers, can have a better understanding of how they affect your economic well-being and investments. At times, we also educate ourselves in the process — we need to research, analyse and understand before we can put ideas into words. Learning applies to all ages and is a lifelong endeavour.
We often get asked this question: What should one invest in to grow a retirement fund? The ultra-rich would more than likely have an entire team of wealth managers catering to all their financial and investment needs. But for the man in the street, with more limited capital to invest, the task is a lot more daunting — either because he lacks the financial-economics background and knowledge and/or interest as well as the time required to monitor, research, and dissect economic and capital market developments.
This is why we have decided to start a brand new portfolio, Tong’s Absolute Returns Portfolio. Why are we doing it? As we have explained before, we want to share our insights and experience to help the public invest better. Investing on your own need not be the impossible or scary task that many fear. And it is far cheaper than coughing up high and fixed annual fees to fund managers, payable regardless whether they perform or not. Trading equities, both local and foreign, is a relatively simple process and accessible to anyone with just a smartphone.
