101 investment choices

There are so many things we can invest in these days. Basically, it's a whole gamut of stuff including stuff like wines, art, watches, jewelry and antiques. Heck, I collected comics when I was in school because a friend of mine told me how they could appreciate in value over time! The comics are probably still mouldering away at home.

For the average person, there is no need to be knowledgeable in all or even most forms of investments and there is definitely no need to diversify into 101 areas in investment. I am quite contented to have the following:

1. Bank deposits
2. CPF
3. SRS
4. Foreign currencies (RMB and IDR)
5. Gold buillion coins
6. Single Premium Endowment Policies
7. Regular Premium Endowment Policies
8. Regular Premium Life Policies
9. Unit trusts
10. Equities (High yielding types mostly.)
11. Real Estate

I am able to manage these on my own and, in aggregate, if they outperform the returns from fixed deposits and outpace inflation, I'm happy. To me, investment is not a complicated matter. It's quite simple.

Keep things simple. Don't complicate things for ourselves. Land banking? Wine? I don't need these. There are many money making opportunities with the tools I have now. That's enough for me.

Don't get carried away

I would like to share this little snippet:

Extracted from an article by
by James B. Stewart
Wednesday, September 30, 2009

As I've said before, no rally goes on forever. The tide will turn, and when it does, I suspect the overvalued stocks will be the hardest to fall. That's why I'll continue to prune my exposure to the highest-flying stocks when and if we hit another selling threshold. Cash may seem dull today, but remember what it felt like just a year ago?

I think this makes sense. Don't you think so? The rally in global equities has astounded bulls and floored the bears. However, all things will end. It's a matter of when and not if.

I usually make it a point to buy only undervalued stocks and laggards. Will I be spared the carnage when the tide turns? I doubt it. Will have to stay vigilant.