GIC sold stocks and bonds - Market Risk has increased?

[alvin]

GIC announced their portfolio as of 31 Mar 12, and how it changed from a year ago.

Sold 4% of stocks to current holding of 45%.
Sold 5% of bonds to current holding of 17%.

Cash on hand increased from 3% to 11%.

Our geniuses at GIC think the market risk is eminent. Just as what Dennis has been warning about.

[lop]

GIC announced their portfolio as of 31 Mar 12, and how it changed from a year ago.

Sold 4% of stocks to current holding of 45%.
Sold 5% of bonds to current holding of 17%.

Cash on hand increased from 3% to 11%.

Our geniuses at GIC think the market risk is eminent. Just as what Dennis has been warning about.

Just 3 to 5 % shift in the respective holdings and 11% cash holding do not really imply the view that market risk is eminent.
Whereas Dennis's 68% cash position (as mentioned in his last seminar on 21 July) really reflects his view that market risk is eminent.

[ein55]

GIC record is only 3.9% annual return for the past 20 years, clearly they are not good in market cycle investment:

http://www.channelnewsasia.com/stories/ ... 33/1/.html

They are conservative investor.

This also shows that when an org has too much $$$ (eg. GIC), it cannot keep too much cash (else return = 0% for certain year), they have to take some risk at certain point of time for investment. Same for fund managers, they can anyhow invest, not their own money. With so much $$$ generated from QE1-2, China QE, ECB LTRO 1-2, etc, world is floated with money, they cannot keep in cash or bond for too long, must be released to higher risk market such as stock market sooner or later.

[alvin]

3.9% is real returns. If the inflation is 5%, meands their nominal rate of returns is 8.9%.

I do not think they will ever go to 68% cash. They have to beat inflation