Shiny,
Let me guess you were from CS
Is there a reason why a major shareholder keep on transfering his shares to nominee name?
Hi,
So, I would urge those with slightly larger portfolios to consider individual bonds instead.
Let's discuss!
There is an inherent problem with bond funds though... they have no maturity date!
In a rising interest rate environment, you will still buy bonds for part of your portfolio (keeping it within 5 years maturity) for balancing. If rates rise, you can still look forward to the maturity where you get back your principal and can then reinvest for higher rates. For bond funds, there is no maturity date, so you can be stuck with losses for years while waiting for the next interest rate cycle (hoping for interest rates to hit zero again?)
Has it really moved to longer-dated bonds? This is a serious question - I don't think A35's portfolio composition has changed very much at all.Generally, the longer the bond's maturity, the harder it is going to be hit by rising interest rates. The move by A35 to move to longer dated bonds now is puzzling; when rates do rise it will hit their bond portfolio even harder.
I do not think bond is suitable for small retail investors, unless you have millions of money. The returns are too low to have any meaningful impact. You see the A35, from 1.00 to 1.20 20% returns for 5 years, pathetic dividends,
A 10k investment on Baidu, Alibaba, Apple or Amazon 5 years ago will likely give you 10 times returns rate, now become 100k! So you just carefully do research and it is not difficult to find stocks that can give you more than 100% returns rate in 5 years.
My baby is due soon and am starting a fund for him. Do you have any links on articles that shows the historical performance of such a strategy by any fund manager or anyone who has measured?
just play along and we will be fineGlobal qe by US, Europe and Japan means that we are merely transferring pte debt to public debt. I think we have passed the point of no return. The politicians and central bankers cannot afford not to keep the music going. I was a non believer of qe (or rather the efficacy) but I think it doesn't matter how now. US may have stopped for now but we still have Europe and Japan to continue...
I truly think we (and more so our next generation) are truly fxxked
BUT QE from central banks has distorted the markets and the traditional rule when stock going DOWN, bond going UP no longer apply. In recent years, bond prices and stock prices both were going up together. So we can predict yield going up and stocks going down in next few years.
Global qe by US, Europe and Japan means that we are merely transferring pte debt to public debt. I think we have passed the point of no return. The politicians and central bankers cannot afford not to keep the music going. I was a non believer of qe (or rather the efficacy) but I think it doesn't matter how now. US may have stopped for now but we still have Europe and Japan to continue...
I truly think we (and more so our next generation) are truly fxxked
Fed's balance sheet sits at around 4 trillion USD. This amount will increase every year as the bonds the fed has bought also generates interest, which they have clarified, would be used to make further bond purchases. Going by US fractional reserve ratio requirement of 10%. We can easily see this 4 trillion be amplified into more than a quadrillion. A 0.1% increase in interest rates would mean $1 trillion dollars is due to be paid.
With the above scenario, how is the fed going to realistically raise any interest rates without triggering massive defaults everywhere?
If i get anything above wrong. Please correct me.