*Official* Shiny Things club - Part 2

[Ilovemathstutor]

hi ST,

can u downsize and explain Modern Monetary Theory to us, in layman terms?

I tried googling and reading it up my own...

what I know is MMT is to prevent gov from defaulting from their own bonds, as they have the ability to print their own infinite currencies. ( leading to Venezuela / Zimbabwe state of things ).

I probably butchered the meaning and would hope u can explain it to us in layman terms... thanks in advance.

do u believe in trading via margin, btw?
if a stock hits an unjustified all-time low, would u do that?

 

[Han Shot First]

Is Hyatt Hotels Corp (NYSE:H) a constituent of MSCI World Index (and in particular of IWDA ETF)? Hyatt is not a component of S&P 500 index but is a component of Russell 3000 index.

 

[chyn_no]

You wouldn’t do anything with a single REIT at all. If you want to invest in REITs then do it via a low cost global REIT index fund.

Ishare global reit etf seems to be only available in US? Doesn seems to hv a good global reit etf listed in uk

 

[little pupsky]

Ray Dalio did not become rich from *just* stock market timing. Please read his book Principles and realize that there’s a lot working hard and working smart (and by that I don’t mean timing the market) involved.

Interesting read:

https://www.cnbc.com/amp/2019/05/01/billionaire-ray-dalio-bought-his-first-stock-at-age-12.html

I aspire to become rich like him from stock market timing.

 

[BBCWatcher]

Ishare global reit etf seems to be only available in US? Doesn seems to hv a good global reit etf listed in uk

IWDP is available, which is analogous to IWDA except specifically for real estate (REITs). That’s not a recommendation, just an observation.

Is Hyatt Hotels Corp (NYSE:H) a constituent of MSCI World Index (and in particular of IWDA ETF)? Hyatt is not a component of S&P 500 index but is a component of Russell 3000 index.

It doesn’t appear that IWDA holds any Hyatt stock at the present time. Hyatt (trading symbol H on the New York Stock Exchange) is among the 1500 largest publicly traded U.S. stocks in terms of market capitalization (i.e. a Russell 1000 stock), but that doesn’t make it particularly large by U.S. standards.

 

[Han Shot First]

Hyatt Hotels is #549 on the 2017 Fortune 500 list. Hyatt Hotels' revenue was USD 4,685 million; insufficient revenue to make it to the Fortune 500.

 

[tangent314]

If I have a sum of money that I want to put towards buying a car in 8 year's time, what's the best way to invest it now? The time horizon seems neither here nor there to me.

1. Buy SSB and reinvest the interest payments, redeem after 8 years
2. Buy MBH and reinvest the interest payments, sell after 8 years
3. Buy IWDA and sell the stake after 8 years

SGS bond issue NZ07100S expires in March 2027, current yield about 2.2%. SSB is probably less painless and gives similar yield.

ETIQA3 gives you 3% for 6 years, you can choose to extend to 8 years but you may not get 3% for the last 2 years. You could of course choose to invest it in other ways after the 6 years.

 

[chyn_no]

IWDP is available, which is analogous to IWDA except specifically for real estate (REITs). That’s not a recommendation, just an observation.

Thanks very much. That's interesting

 

[unhinged_loon]

Ray Dalio did not become rich from *just* stock market timing. Please read his book Principles and realize that there’s a lot working hard and working smart (and by that I don’t mean timing the market) involved.

He got rich by managing other people's money well and earning fees along the way. Bridgewater is not a gigantic hedge fund for shits and giggles.

I think it would do some good for people to stop thinking that they can become billionaires by managing their own money.

 

[smart alex]

IWDA is 57.63 now

I hope itwill hit $58

 

[smart alex]

Interesting read:

https://www.cnbc.com/amp/2019/05/01/billionaire-ray-dalio-bought-his-first-stock-at-age-12.html

I aspire to become rich like him from stock market timing.

aiya fake one la

no one really gt rich by pure playing stock, smart one gt side business and other investments one

 

[StaRChO]

Intended Allocation based on this year age as follows (38-38-24)

Current allocation

ES3 - 40.6% ($500 monthly)
IWDA - 36.7% ($1500 quarterly)
MBH - 22.6% ($300 monthly)

IWDA is purchased quarterly and I should be purchasing it this month.

Should I
1. rebalance by selling ES3
- Based on this case, after reducing ES3 to 38%. I only need to purchase $200 of MBH.
2. Just buy as per allocated amount ($500 + $1500 + $300 = $2300)
- If I were to add $2300 to the current portfolio sum and divide based on the intended allocations. I would need to purchase 1kUSD of IWDA and roughly $1100 of MBH. No purchase required for ES3.
Note: I read from this https://www.moneyunder30.com/rebalance-your-portfolio - under the section "What if you’re buying shares?"

If option 1, what should I do with the amount by selling ES3.
If option 2, I wouldn't be able to realize the gain by selling the high.

Hope someone can advise on this. Appreciate it.

 

[tangent314]

Intended Allocation based on this year age as follows (38-38-24)

Current allocation

ES3 - 40.6% ($500 monthly)
IWDA - 36.7% ($1500 quarterly)
MBH - 22.6% ($300 monthly)

IWDA is purchased quarterly and I should be purchasing it this month.

Should I
1. rebalance by selling ES3
- Based on this case, after reducing ES3 to 38%. I only need to purchase $200 of MBH.
2. Just buy as per allocated amount ($500 + $1500 + $300 = $2300)
- If I were to add $2300 to the current portfolio sum and divide based on the intended allocations. I would need to purchase 1kUSD of IWDA and roughly $1100 of MBH. No purchase required for ES3."

You end up wasting a lot of money if you buy multiple counters per month. You should plan to buy only one counter per month and buy the counter that you have the largest shortfall of.

In your case, your strategy should be to spend $800 on MBH or ES3 on months when you choose to buy those, or $2300 on IWDA on the month you choose to buy IWDA.

So for this month you have a -1.3% shortfall of IWDA and -1.4% shortfall of MBH so you should spend $800 to buy MBH. This should put IWDA into a bigger shortfall and both ES3 and MBH into the positive, so next month you spend $2300 on IWDA.

Just keep repeating the process every month. This way you will stay close to your desired allocation and don't have to waste money on fees purchasing multiple counters per month and selling to rebalance. This works even if your target changes as you grow older, and also automatically adjusts to market performance and volatilty

 

[chyn_no]

If a investor doesnt want to convert their SGD to UsD to invest in global etf (IWDA), then is investing via dollardex lion global infinity global fund an good alternative?

 

[BBCWatcher]

If a investor doesnt want to convert their SGD to UsD to invest in global etf (IWDA), then is investing via dollardex lion global infinity global fund an good alternative?

Via DollarDex or POEMS since they seem to offer the same costs with respect to that particular unit trust.

Yes, but bear in mind there is no difference in terms of currency risk. Lion Global is still converting the currency(ies) for you if/as needed, within the unit trust. All currency conversion costs are passed along as part of the fees levied within the unit trust. In both cases you're not buying or investing in currencies. You're buying and investing in stocks, in shares of real businesses that do business around the world.

If you find that Lion Global's Infinity unit trust(s) via DollarDex or POEMS is(are) more transactionally convenient for you, and if you're willing to pay for that convenience -- the unit trust-based approach could easily be a higher net cost approach -- then that's fine. But that's as far as it goes. Either way, it's still global stock investing, not currency investing/trading.

 

[little pupsky]

True, though not everyone who manages other people’s money will get rich the way Dalio did. I say it still boils down to the person’s intrinsic qualities and how he builds an asset management vehicle to manage OPM and his own money.

And agree, I get really irritated when people just dream of becoming rich, and worst, by thinking/advocating it happens through a singular factor, like:
- timing the market!
- stock pick! don’t buy ETFs, that’s for lazy people!
- invest in and flip properties!
etc etc etc

He got rich by managing other people's money well and earning fees along the way. Bridgewater is not a gigantic hedge fund for shits and giggles.

I think it would do some good for people to stop thinking that they can become billionaires by managing their own money.

 

[Eternit]

If I already have GB3 via POSB invest saver as well as IWDA through SCB. Should I add a robo advisor stashaway to the mix? I see some getting very good returns on stashaway...

 

[zhane]

What is the reason of your transfer? The only valid reason I can think of, is to meet your 100K USD account value to remove minimum monthly activity fee.

But if you already DCA monthly to the amount that justify the $10 fee, then I don't see a reason to incur the transfer fee. SCB doesn't charge custody fee anyway.

whats the min to do for IBKR before it is more worth while than SCB wrt IWDA?

 

[BBCWatcher]

whats the min to do for IBKR before it is more worth while than SCB wrt IWDA?

If you’re doing really anything monthly (such as buying IWDA), Interactive Brokers (IB) will win the cost contest. At relatively low (and lower) dollar amounts into a single vehicle on a bimonthly, quarterly, or some other less than monthly basis, Standard Chartered or possibly a unit trust (e.g. Lion Global’s “Infinity” unit trust via POEMS or DollarDex) will be more cost efficient than IB...until you get to a total account value of US$100,000 at IB.

 

[smart alex]

whats the min to do for IBKR before it is more worth while than SCB wrt IWDA?

IBKR need US$100,000 to waive off monthly charge

so it is actually for rich people