Official Shiny Things thread—Part III

[brfish]

I can understand, if it's a large sum and you want it quick.

One more question. After your subscription/redemption process, did you compare the price you got versus if you have bought from open market? Did you get a good price, and by how much (if you still keep a record)? I think in theory you should, because you eliminate the spread caused by the market makers and other participants, but I'm interested to hear from you.

The price you get is strictly NAV

 

[brfish]

Great info,

Can u do this if u r using a custodian trading account such as SCB ?

If not, this would be another knock down on SCB trading platform.

I don't think custodian or not matters. What matters is whether the broker is a participating dealer. Not all brokers are in that list. In fact, here is the list from Nikko AM on A35:

ABN Amro
CGS-CIMB Securities
DBS Vickers
Phillip Securities

List for MBH:

CGS-CIMB Securities
DBS Vickers Securities
UOB Kay Hian
Phillip Capital
Fundsupermart
iFast Financial
OCBC Securities

 

[tangent314]

I see online.Most ppl can beat the index. Is it survival bias? Very demotivated as I continue to DCA.

Yes it's survival bias. There's even a wikipedia article for this phenomena

Thanks for sharing your experience. I also encountered Phillip Securities staff who just asked me to buy from market and I gave up in the end. Was only inquiring and not really going to subscribe/redeem.

I'm wondering, if you are able to wait for up to 2 weeks for the subscription/redemption to happen, what's stopping you from splitting the $300k into multi-day trades? And, you smooth out the price in the process. For me, I would prefer to get an average price over a few days than to subject myself to the price on a single day.

It's probably easier buying from the market anyway, even with a large trade. Apparently you can put in a limit order of several lots at the buy price even if there's only one lot available. The market maker will notice the order and do the lot creation for you.

 

[revhappy]

Right now ETFs are trading at a discount to NAV, so it I best to buy from the market now.

 

[swan02]

1) the value of your bonds will drop in a crisis due to lack of liquidity.

2) going to the market maker will incur extra costs and take a longer time to execute the trade.

How does this lend support to own a35/mbh?

Well since I’ve come from such low levels respecting mbh and a35. Any inch of liquidity added is a benefit.

I’ve also come to appreciate the role of cash in a crisis when everything pple wanna sell below NAV.

 

[decibel.]

Anyone using FSM? I just started and really like how fast it is to approve things compared to other Brokers less IB. Any idea if the FX rates is still better on IB or same as FSM? One drawback would be that no LSE on FSM

I have existing shares sitting in BCIP. Anyone knows if possible to transfer those to FSM or I must do a sell on BCIP? I know can transfer to CDP just wondering if can just transfer to another custodian?

Sent from HUAWEI VOG-L29 using GAGT

 

[Johnpierpontmorgan]

Posted several times over the last few years

QE to infinity.
Stagflation is here.
Obviously, the economy is just surviving on cheap money for the past ten years. Yet people just jump on etfs without understanding the economy

not enough blood on the streets yet. Will deploy cash reserves bit by bit

 

[888888888888]

Obviously, the economy is just surviving on cheap money for the past ten years. Yet people just jump on etfs without understanding the economy

In an uptrend, when money flows into less profitable investments, the value of which increases only because of demand but not because of their actual profitability. and the impracticality of markets of being in a down phase. To be fair, in markets nothing is mathematically deterministic.

Obama says he is no longer responsible for the economy.

1) the value of your bonds will drop in a crisis due to lack of liquidity.

Convexity hedging plus inverted yield curve, with everyone rushing to adjust portfolios; pushing swap rates down faster than 10 year treasury yields. the pm has to manage the duration around specified risk limits. with extreme moves it can lead to pricing dislocations and/or widening spreads; some bonds also exhibit negative convexity.

 

[shallow]

Posted several times over the last few years

QE to infinity.
Stagflation is here.
Obviously, the economy is just surviving on cheap money for the past ten years. Yet people just jump on etfs without understanding the economy

not enough blood on the streets yet. Will deploy cash reserves bit by bit

If it is stagflation scenario, cash cant escape too

 

[Zink00]

2 circuit breakers last week, tonight again?

 

[unknownplayer]

Looks like it.. I think a lot of people will be experiencing a major market crash for their first time me included. Time to build up xp and hodl....

 

[makav31i]

Anyone using FSM? I just started and really like how fast it is to approve things compared to other Brokers less IB. Any idea if the FX rates is still better on IB or same as FSM? One drawback would be that no LSE on FSM

I have existing shares sitting in BCIP. Anyone knows if possible to transfer those to FSM or I must do a sell on BCIP? I know can transfer to CDP just wondering if can just transfer to another custodian?

Sent from HUAWEI VOG-L29 using GAGT

Why do you want to pay and transfer shares to FSM when you can pay the same amount to transfer to CDP and not be restricted to sell on FSM or transfer to another broker in the future when things with FSM becomes unfavourable...

 

[swan02]

Looks like it.. I think a lot of people will be experiencing a major market crash for their first time me included. Time to build up xp and hodl....

To be more exact, most have never experienced this with a portfolio large enough to feel pain and regret. All I had back then in the GFC was 135k bought into it 35 percent down, went further down like 15% or more and I panicked. Shut the computer and played world of Warcraft and do overtime at work never to touched it again many months later. Heed my advice !

It’s never about this man made algorithmic concept of 110-age. It’s all about identifying your resilience and appetite for risk first and foremost. It’s damn hard. Then u see whether u can fit into this arbitrary concept of 110-age. Screw this up and u will be with many never ever to invest again. Take it as a very cheap lesson. Embrace it cuz it’s gonna make u rich.

It’s still too early to buy. I still advocate continual investing with equity between zero to max 50 percent as max. Then go 100 percent risk asset once Shiller cape fall below 20. Don’t be too greedy and wait for 8 or 10. DCA if need be but need to b 100% risk asset within one years time when cape goes into and continues to b below 20.

If for whatever reason it goes back up, and u have buyers remorse, and still a noob, then keep equity between 20-40 percent at all times when cape is above 20.

I’ve now sold everything including bonds. The x2 recent days of positive correlation between equity and bonds were very disappointing. Everything went so well until investors decide just to dump everything akin to GFC.

I won’t regret cash even if equity went back up. My sanity and peace of mind is worth more. After all research done by wade Pfau Shows that even zero equity with timing with Shiller cape still rank superior to a 100 percent equity over a very long period. U just need to alter the cape higher to take more risk. This is good enough for me.

 

[swan02]

Convexity hedging plus inverted yield curve, with everyone rushing to adjust portfolios; pushing swap rates down faster than 10 year treasury yields. the pm has to manage the duration around specified risk limits. with extreme moves it can lead to pricing dislocations and/or widening spreads; some bonds also exhibit negative convexity.

Can u explain it in more lay words ? I do understand partially but many don’t. Any sites to read up ? this explains the recent debacle with bonds.

 

[Asphodeli]

1) the value of your bonds will drop in a crisis due to lack of liquidity.

2) going to the market maker will incur extra costs and take a longer time to execute the trade.

How does this lend support to own a35/mbh?

1) if there's no buyer, then in theory you can't price the bonds. all you can do is hope that the company redeems your bonds at par value. this is assuming you're talking about a single bond though, and assuming you're a panicky person who wants cash NOW.

2) if you have 1mil in cash and you wanna throw all of that on (specifically) MBH/G3B to buy...yeah the ETF is gonna move, but by how much, depends on the MM and liquidity.

Going to the MM with a large clip makes sense in return for delayed execution and a slightly higher fee. If it works for the property market (going through an agent vs DIY listing and selling), why not for bond ETFs?

 

[Investnewbie82]

Anyone here still able to DCA as per ST?

Feels like putting anything in now is equivalent to burning half of it by next month

Also wonder if there’s any variation of DCA that can make use of these market events?

 

[flowerpalms]

You can still DCA end of this month

Anyone here still able to DCA as per ST?

Feels like putting anything in now is equivalent to burning half of it by next month

Also wonder if there’s any variation of DCA that can make use of these market events?

 

[888888888888]

Can u explain it in more lay words ? I do understand partially but many don’t. Any sites to read up ? this explains the recent debacle with bonds.

In the short, it has to do with liquidity which he had spoken of before I believe. If is your bond component can calculate the modified duration.

 

[K2DuoXoXo]

Hi all, just read that all 8 major US banks will suspend share buybacks, in lieu of current situation.

Does it mean stock prices will plunge even more? Or does it depend on other factors as well?

 

[SpeedingBullet]

Hi all, just read that all 8 major US banks will suspend share buybacks, in lieu of current situation.

Does it mean stock prices will plunge even more? Or does it depend on other factors as well?

It just means those 8 US banks will stop buying back shares. It doesn't necessarily affect other stock prices

At this market's state, all correlations go to one so everything goes down together.