What your view about putting money into SPY every month and only holding SPY

Han Shot First

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Actually depend on individual whether they want to time the market. Warren Buffet is now cash rich as he see a big correction soon.

Apple (the company) is also sitting on a cash hoard larger than Berkshire Hathaway's. Tim Cook is waiting... not for a correction... but for a stock market crash.

It's coming. The question is not whether but when.
 

Han Shot First

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"Nothing beat the index the long term. If you can tolerate a higher variance the best investment may be to put it into SPY every month and hold for 30-40 years."

What your view of this statement? Some people may use Nikkei as an example to counter this argument

I disagree with the statement(s) because SPY is the wrong S&P 500 ETF to use. The institutional investors use this ETF for trading. For buy-and-hold investor, there are better S&P 500 ETFs than SPY.
 

commie_rick

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"Nothing beat the index the long term. If you can tolerate a higher variance the best investment may be to put it into SPY every month and hold for 30-40 years."

What your view of this statement? Some people may use Nikkei as an example to counter this argument

i will take sti index, stability and lift upgrading guaranteed if you are the 70%
 

celtosaxon

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Is everyone who is suggesting US listed ETFs investing less than $60,000, or are you at least US person from a tax perspective?

As a US situs asset, SPY should only be considered if you fit one of the above two categories, otherwise non-US situs VUSD listed on the London Exchange is for you.

Both ETFs give you exposure to the US S&P 500 Index, which represents 80% of the total US stock market. The only difference with VTI is you get close to 100% of the total US stock market, including small and mid cap.

As for market timing, good luck with that. As the saying goes... the best time to invest is now. Don’t build up savings in cash and try to time the market. As soon as you have anything to spare (that you don’t need short or medium term), put it to work.

If you haven’t been doing that and have built up cash savings, either invest it all now or if it makes you more comfortable, divide it into 12 equal parts and start dollar cost averaging on a set day each month. Don’t forget to add any additional savings you can scrape together with that as you do.
 

Newbyib

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Even if the investor started investing in year 2000 or 2008, he will still be deep in the green.
.

By choosing the start year you are already market timing. If you choose 2007, 2006,2005 for Sti, you will get very poor returns- that you can possibly have better returns using good quality bonds. And if you choose a different end point - you are also in trouble.This applies to only STI; does not apply to other indices that are strongly trending up - so DCA is not enough - you need to choose the correct index fund.
 
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Shiny Things

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"Nothing beat the index the long term. If you can tolerate a higher variance the best investment may be to put it into SPY every month and hold for 30-40 years."

What your view of this statement? Some people may use Nikkei as an example to counter this argument

That sounds like it was written for a US audience.

The S&P 500 is a lot more relevant for American investors than for overseas investors; it wouldn't really make sense for a Singaporean investor to dedicate a slug of their portfolio to US equities instead of a broader global-equities bucket.
 

Okenba

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"Nothing beat the index the long term. If you can tolerate a higher variance the best investment may be to put it into SPY every month and hold for 30-40 years."

What your view of this statement? Some people may use Nikkei as an example to counter this argument

This is a view held by some US index investors. The argument is that US companies are global companies anyway and that gives them global exposure, so there is no further need to invest in non-US equities.

I think a common guide for these folks is to keep ex-US to under 20% of their equity portfolio.

Whether or not you buy that argument, it is worth noting that US is already a big part of a global portfolio.
In VWRA, US is 55%.
In IWDA, US is 64%.

If you go 80 US, 20 Global, your US exposure ends up being 91%. Overweighting US on a global portfolio by 1.6 times.

However, since we are non-US investors, let's flip the ratio to 20 US, 80 Global. Then US exposure is now 64% Comparable to how much IWDA overweights the US. I believe such a ratio would still be acceptable for some.
 

celtosaxon

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However, since we are non-US investors, let's flip the ratio to 20 US, 80 Global. Then US exposure is now 64% Comparable to how much IWDA overweights the US. I believe such a ratio would still be acceptable for some.

In order to be underweight in US you have to overweight somewhere else... what do you propose to overweight in this case?

For me, I don’t have a good answer.. and for that reason I would not recommend any investor go below 50% US.

If you compare industries of companies in the US vs rest of the world, technology is the stand out. So without US, you end up heavily underweight in technology from a global standpoint. Therefore, if you are going limit your exposure to 20% US, I would recommend choosing a sector specific ETF focused 100% on technology.
 

Okenba

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In order to be underweight in US you have to overweight somewhere else... what do you propose to overweight in this case?

For me, I don’t have a good answer.. and for that reason I would not recommend any investor go below 50% US.

If you compare industries of companies in the US vs rest of the world, technology is the stand out. So without US, you end up heavily underweight in technology from a global standpoint. Therefore, if you are going limit your exposure to 20% US, I would recommend choosing a sector specific ETF focused 100% on technology.

You misunderstand. I'm not under weighting US, I'm overweighting it.

I'm saying that with a global portfolio (including US) as base, overweighting some more US (by means of a S&P etf) seems to be acceptable.

It is comparable to how some decide to buy IWDA instead of VWRA.
 

Okenba

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What's wrong with VWRA or IWDA alone?

Nothing. But the original question was about S&P, so if someone does want to mix S&P with a VWRA (for eg.), I'm saying that in small amounts, it doesn't overweight US any more than choosing IWDA would (for eg.)
 

celtosaxon

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Nothing. But the original question was about S&P, so if someone does want to mix S&P with a VWRA (for eg.), I'm saying that in small amounts, it doesn't overweight US any more than choosing IWDA would (for eg.)

Oh, you are saying one should be 20/80 in US/non-US if already owning something like IWDA that has a good chunk of US already. That would depend how much IWDA is as a percent of your total.

I always look at my exposure in totality across everything (top down). So if I own something like IWDA, I will break it down by % US/Europe/Japan and then combine that with any other holdings so that I can see the total exposure across all investments.
 

JetStorm

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Market crash means for STI probably will fall by >35% in Singapore. Your 7% upside to date will be too little buffer to cushion the crash fall.
And it will take another 5 years or more after the crash to recover your losses, so end up 10 years later profits negligible if you are buying in past 4 years till now?

Let's wait and see :s13:
Aiyoh dont be wet blanket can? I only do dca with whatever money i can spare...

Sent from Xiaomi REDMI NOTE 8 PRO using GAGT
 
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