StashAway has its new corporate office at The Octagon, and we were the first to have a sneak peak of the premises during the event hosted by StashAway with BlackRock on 11 December.
“BlackRock x StashAway: A fireside chat on Investing with ETFs”
Michele Ferrario, Co-founder and CEO StashAway, moderated the session with Anthony Arthur, Head Asia ex-Japan Wealth BlackRock. In general, he addressed queries such as what does the basket of stocks the ETF consists of, how far off does the ETF follow the market index etc. He emphasised how Time in the Market is better off over timing the market. Michele added that since 2015 till today, markets have risen 50%. For a $100,000 investment, $50,000 was money left on the table should one be not vested.
I could see from the audience poll while a majority are vested in the markets (and a good number in ETFs), the general sentiment is whether now is still a good time to remain vested, or take money off and wait for a crash.
Most of us read updates from newspapers, magazines, finance websites — they have eye-catching headlines as readership and traffic is their top priority. It all boils down to your risk appetite and whether you have been consistently investing or have a all-in or nothing mentality.
The crux is — what will you do when the market crash?
We talk about asset reallocation, portfolio rebalancing among other stuff. Sometimes, in rare moments, the “losses” is systematic. In 2018, Anthony gave the example that both bonds and equities did not perform well. Moving your monies from one place to another would have helped little. In times of crashes, it actually presents market opportunities to enter and make a profit overall over the next years or so.
It further echos my thoughts that investors should have in place their cardinal investment rules to take guidance from during peacetime and crisis.
Have you an investment plan for good and bad times?