*Official* Shiny Things club - Part 2

[FinalDestiny...]

If you have been investing in IWDA regularly from young and when you reach 65 your P/L is negative, then yes you have to be alarmed, because 99.9% of long-term IWDA investors will be showing a positive p/l on reaching retirement .

Ah okay that makes sense, thanks

 

[FinalDestiny...]

Thank you. I have tried to place a trade, however it says I do not have enough settled cash. I definitely have enough cash in my account to make the trade. Is it because I need to convert my SGD into USD before buying IWDA? Do I do this simply by buying under USD.SGD?

Since I have some GBP in my account, I thought I would try buy SWDA. However, the price is above GBP 4k per share How come it is so different?

Yup, you have to convert SGD to USD under USD.SGD, then used the converted USD to buy IWDA.

 

[Shiny Things]

It is true, Maybank MIP will be discontinued. I went down to north canal and they said they can't open MIP for me already, says they are discontinuing. They should be releasing the news next week.

Man, that sucks. Thanks for doing the research, though!

If MIP is suspended, what is the cheapest way to buy ES3, assuming $300-500 per month?

Ahh man. Poems SBP is too expensive. OCBC's plan is OK, but not amazing, and it has a $5/month minimum (which is not great if you're only trying to invest a couple hundred dollars!).

I guess it's back to POSB IS. MBKE MIP was great while it lasted; anyone from inside Maybank know why they canned it?

Since I have some GBP in my account, I thought I would try buy SWDA. However, the price is above GBP 4k per share How come it is so different?

That's in pence. For some inexplicable reason, a lot (if not all) stocks on the LSE that are listed in pounds are quoted in pence. This is one of those weird things.

Another side question, if you already are buying into 1 bond etf, is there still a need to pursue others? Let's say if they are made up of different sectors, but they overlap. Or should just topping up/rebalance is enough?

Not for new and small investors. For larger investors (six figures or more), it's worth owning a couple of diversified bond ETFs - say, a SGD bond ETF and a global bond ETF.

 

[Shiny Things]

What would be considered a big amount to move the market?

Depends on the stock, but generally if you're trying to do a six-figure clip or larger in one hit, I can help out.

 

[Fcesca]

That's in pence. For some inexplicable reason, a lot (if not all) stocks on the LSE that are listed in pounds are quoted in pence. This is one of those weird things.

Ah I see.. thanks!

 

[Asphodeli]

Shiny Things wrote a book to teach.
it's only like us$8.
if you are too cheap for that, maybe you should...
( why don't u complete the line above? )

Don't get me wrong, I bought the book off Amazon already. I was wondering what was sugarbun's train of thought.

 

[churnmaster]

There's an important concept you will want to grasp first, it's called
https://en.wikipedia.org/wiki/Risk_of_ruin

If you simply long a stock and it drops 50% like in 2007-2008, you still own the stock and can wait for it to recover. If you 2x leverage on that same stock and it drops 50%, you're getting force-sell and lose everything and get nothing even when the market recovers.

How about putting 50K into a fixed income stream earning 2% pa and the remaining 50K for 2x leverage in stocks. One yr down the line, if you get a 50% drop in stocks your capital deployed in stocks get wiped out while the fixed income stream would have earned 1K. So in the end you will still be left with 51K, which you can deploy in the beaten down stocks, if you wish to.

Thus, use of leverage is not a bad thing. How you use that leverage makes all the difference. People are afraid of trading futures because of the higher leverage they offer. However, if you keep your portfolio leverage at 1x (no leverage) or 2x (small leverage) while using futures, do you think your capital can get wiped out?

The fact that these leveraged products come with an expiry date, will force you to make a decision whether to remain invested all the way down to the bottom or just cut loss midway and then start investing once the market stabilises a bit. Most people fail to make money on their investments because they do not realise their gains and cut their loses on a regular basis.

 

[Zink00]

Anyone noticed scb premium for usd rates up from 0.65% to 1%?

 

[Shiny Things]

How about putting 50K into a fixed income stream earning 2% pa and the remaining 50K for 2x leverage in stocks. One yr down the line, if you get a 50% drop in stocks your capital deployed in stocks get wiped out while the fixed income stream would have earned 1K. So in the end you will still be left with 51K, which you can deploy in the beaten down stocks, if you wish to.

Orrrrr you could have just bought stocks with zero leverage, and you’d end up in the same place - if anything you’d end up a bit ahead because you wouldn’t have paid the interest on the leveraged equities.

 

[Ilovemathstutor]

Don't get me wrong, I bought the book off Amazon already. I was wondering what was sugarbun's train of thought.

I realised most of the people around me lose from stock pickings.
because they are dumbos.
they buy because temasek bought, it's the wrongest reason to buy a stock.
i met dumb people who bought and are stuck in hilarious jb condos because of the exact same reason.

there's a reason why passive index s&p500 investing is preached by warren buffett for everyone else.

just follow what ST teaches in his book, if u don't have 10 hours to read into the stock for > 1 month to understand their biz, etc.

 

[doody_]

Anyone noticed scb premium for usd rates up from 0.65% to 1%?

That's pretty high, anyone knows a better way to convert over to USD?

 

[chyn_no]

I have checked with posb/dbs on offering more etfs to the invest saver, it seems they have plan for that but unable to commit a date for it.

 

[limster]

anyone who tries to convert forex during non-trading hours like weekends will encounter a larger spread. the only spread that matters is the spread during actual trading hours. Furthermore this is the memorial day weekend

 

[creatrixnator]

What are trading hours ? Is it the US trading hours or SG trading hours ?

anyone who tries to convert forex during non-trading hours like weekends will encounter a larger spread. the only spread that matters is the spread during actual trading hours. Furthermore this is the memorial day weekend

 

[bolabola]

Hi Shiny,

Have you heard of SWRD.LSE etf?

It seems it is exactly the same as iwda - denominated in USD, tracking MSCI developed market, based in Ireland.

It also has a lower TER than IWDA.

What are you thoughts on it?

 

[Wonderer haha]

I have checked with posb/dbs on offering more etfs to the invest saver, it seems they have plan for that but unable to commit a date for it.

What types of ETFs you were referring ? Thanks.

 

[Fcesca]

anyone who tries to convert forex during non-trading hours like weekends will encounter a larger spread. the only spread that matters is the spread during actual trading hours. Furthermore this is the memorial day weekend

Is the larger spread so significant that you should wait until weekdays - even if you are converting several hundred SGD for investment into IWDA. E.g. you are not trying to make money trading forex.

 

[hwckhs]

It seems it is exactly the same as iwda - denominated in USD, tracking MSCI developed market, based in Ireland.

For anyone who's curious about this ETF:

IWDA: TER: 0.20%, AUM: US$18b
SWRD: TER: 0.12%, AUM US$0.3b

I'm not an expert. Leaving for Shiny or others to advise. But, it looks like an interesting alternative.

 

[Ilovemathstutor]

Because your friends did not understand & practise what is in these 2 books:
1) The Intelligent Investor
2) Common stocks uncommon profits

Warren Buffett said he benefited greatly from these 2 books, main reason for his investing success & high returns.

But if you no time or not capable like Buffet's children, then Buffett recommend that you can only invest in passive ETFs (ok return but not great).
If you have 50 Billions Dollars like Buffett, a return of 1% pa also more than enough (since you will get $500 Millions dividend a year)!

I didn't read those books and have 3 digits returns per stock picking, how about u?
let me know, thanks!

 

[JuniorLion]

For anyone who's curious about this ETF:

IWDA: TER: 0.20%, AUM: US$18b
SWRD: TER: 0.12%, AUM US$0.3b

I'm not an expert. Leaving for Shiny or others to advise. But, it looks like an interesting alternative.

SWRD is by SPDR.

it has very low trading volume, so not sure why you would be interested.