Building a robust all-weather portfolio that withstand shocks

My current portfolio allocation is roughly about

  1. 50% corporate bonds,
  2. 20% reits,
  3. 15% stocks
  4. 15% cash.

My portfolio looks conservative to most people. Am I preparing for a crash in 2017? No, I am preparing for the eventual crash, which is unlikely over the next 2 years. Equities and properties tend to rise and fall together. The current market has high optimism in the property market ( ). In fact, I am quite bullish in the market now.

The likely scenario that is playing in my mind is that the global stock market run will continue for a few years till the euphoric stage, before the crash of equities and properties. (Read this to know my view of properties and stocks :

Although I am bullish in the stock market over the next few years, I am prepared for the worst, and will continue to prepare for the unexpected. When the crash happens, my portfolio must be able to be robust enough to withstand major shocks.

There are 3 areas that I can further strengthen the defense of my portfolio. At point, I am looking to invest

  • 10% to 20% in US Treasuries long dated bonds (Now 1.5% in my portfolio)
  • About 5% in Gold. (Now 1% in my portfolio)
  • 5% to 10% in Cryptocurrencies (Now less than 1% in my portfolio)

The essence of Portfolio Management is the management of risks. We must not, like most people, be “managing their returns”. If the fat boy fires a missile for real, I would like my portfolio be able to withstand the punch.

  • I'm a remisier with Maybank Securities, and as a bonds and REITs investor myself, I guide my clients to build resilient bonds and REITs portfolios. If you like to be guided, please open a trading account to become my client; It's free!