HWZ Forums

Login Register FAQ Mark Forums Read

*Official* BBCWatcher club

Like Tree190Likes
Reply
 
LinkBack Thread Tools
Old 12-03-2020, 05:06 AM   #1906
Senior Member
 
Join Date: Feb 2018
Posts: 1,604
Hi BBCW, I have a question to consult you.

I am looking to buy a property in SG during this coronavirus-hit times. I have however been putting money into the stock markets as equities been falling.

My concern is end of the day I don’t have sufficient cash to buy a property, if my cash are stuck in equities at a lower price than my entry price.

Do you have any thoughts on how the SG property index tracks the SG and US stock markets ? In other words, does normally/historically the stock market rise first (giving opportunity to cash out at profit) prior to the housing market rising back, so there’s cash to buy housing ?

As always thank you for your views

MrHighlander is offline   Reply With Quote
Old 12-03-2020, 08:07 AM   #1907
Arch-Supremacy Member
 
Join Date: Jun 2010
Posts: 11,625
I am looking to buy a property in SG during this coronavirus-hit times. I have however been putting money into the stock markets as equities been falling.

My concern is end of the day I don’t have sufficient cash to buy a property, if my cash are stuck in equities at a lower price than my entry price.

Do you have any thoughts on how the SG property index tracks the SG and US stock markets ? In other words, does normally/historically the stock market rise first (giving opportunity to cash out at profit) prior to the housing market rising back, so there’s cash to buy housing ?
No idea, but I doubt there's a strong correlation. For example, property valuations in Singapore crashed during the Asian Financial Crisis, but stock markets outside the region, particularly in the U.S., had a strong bull run.

Quite simply, you don't park your down payment for a near-term home purchase in stocks. That doesn't make sense.
BBCWatcher is online now   Reply With Quote
Old 12-03-2020, 08:51 AM   #1908
Arch-Supremacy Member
 
Join Date: Jun 2010
Posts: 11,625
Where Are U.S. Markets Right Now?

Yesterday (March 11, 2020), the U.S. S&P 500 Index closed at 2,741.38. That means U.S. markets have met the official definition (such as it is) of a bear market. [On edit, correction: Only the Dow Jones Index meets that official definition, and nobody seriously cares about the Dow Jones Index any more except the popular press.] That's good news if you're buying stocks since you can get more shares for fewer U.S. dollars (and fewer Singapore dollars too).

Here's an interesting question: when was the last time U.S. stocks were this affordable? And the answer is...not too long ago! As recently as June 3, 2019, the S&P 500 Index closed at 2,744.45 and hit an intraday low of 2,728.81. That was just over 9 months ago.

Last edited by BBCWatcher; 12-03-2020 at 11:55 AM..
BBCWatcher is online now   Reply With Quote
Old 12-03-2020, 12:52 PM   #1909
Member
 
Join Date: Oct 2018
Posts: 310
Looking back at early 2009 and what a great opportunity that was... makes me think of the Warren Buffett quote, when others are fearful, be greedy.

Yesterday (March 11, 2020), the U.S. S&P 500 Index closed at 2,741.38. That means U.S. markets have met the official definition (such as it is) of a bear market. [On edit, correction: Only the Dow Jones Index meets that official definition, and nobody seriously cares about the Dow Jones Index any more except the popular press.] That's good news if you're buying stocks since you can get more shares for fewer U.S. dollars (and fewer Singapore dollars too).

Here's an interesting question: when was the last time U.S. stocks were this affordable? And the answer is...not too long ago! As recently as June 3, 2019, the S&P 500 Index closed at 2,744.45 and hit an intraday low of 2,728.81. That was just over 9 months ago.
celtosaxon is offline   Reply With Quote
Old 12-03-2020, 04:16 PM   #1910
Arch-Supremacy Member
 
Join Date: Jun 2010
Posts: 11,625
Looking back at early 2009 and what a great opportunity that was... makes me think of the Warren Buffett quote, when others are fearful, be greedy.
I expect the global COVID-19 pandemic to get much worse, unfortunately. I'm not going to be trying to time markets, though.
BBCWatcher is online now   Reply With Quote
Old 12-03-2020, 04:36 PM   #1911
Senior Member
 
Join Date: Feb 2018
Posts: 1,604
Thanks BBCW

Btw is there any good Europe etf which you would recommend? I checked out CEU but the volume seems dismal despite the fund size.

No idea, but I doubt there's a strong correlation. For example, property valuations in Singapore crashed during the Asian Financial Crisis, but stock markets outside the region, particularly in the U.S., had a strong bull run.

Quite simply, you don't park your down payment for a near-term home purchase in stocks. That doesn't make sense.
MrHighlander is offline   Reply With Quote
Old 12-03-2020, 05:17 PM   #1912
Arch-Supremacy Member
 
Join Date: Jun 2010
Posts: 11,625
Btw is there any good Europe etf which you would recommend? I checked out CEU but the volume seems dismal despite the fund size.
I don't like overweighting any geography's stock market(s) with the possible exception of one's likely retirement country, but have you looked at ISEU and VEUR, both on the London Stock Exchange?
BBCWatcher is online now   Reply With Quote
Old 12-03-2020, 05:25 PM   #1913
Senior Member
 
Join Date: Feb 2018
Posts: 1,604
Thanks. Both ISEU and VEIR are distributing though - I am looking for a accumulating ETF. Looking at CSX5 (euro stoxx 50) but it has only 50 companies ...

Any suggestion ?

I don't like overweighting any geography's stock market(s) with the possible exception of one's likely retirement country, but have you looked at ISEU and VEUR, both on the London Stock Exchange?

Last edited by MrHighlander; 12-03-2020 at 05:31 PM..
MrHighlander is offline   Reply With Quote
Old 12-03-2020, 07:24 PM   #1914
Member
 
Join Date: Oct 2018
Posts: 310
I expect the global COVID-19 pandemic to get much worse, unfortunately. I'm not going to be trying to time markets, though.
Yes, it probably will. But how much of that “much worse” is already baked in versus how bad it will really be? Perception matters, that is why markets tend to overshoot, both on the up and downside.

Agree with you though, trying to time markets is generally not advisable... but for anyone who has been procrastinating, this could be an opportunity to make up for lost time. I have a few family members in this situation.
celtosaxon is offline   Reply With Quote
Old 12-03-2020, 10:05 PM   #1915
Arch-Supremacy Member
 
Join Date: Jun 2010
Posts: 11,625
Thanks. Both ISEU and VEIR are distributing though - I am looking for a accumulating ETF. Looking at CSX5 (euro stoxx 50) but it has only 50 companies ...
Any suggestion ?
I think VEUR and ISEU are the least worst.

But how much of that “much worse” is already baked in versus how bad it will really be? Perception matters, that is why markets tend to overshoot, both on the up and downside.
We’d just be guessing, but as far as COVID-19 goes this’ll be bad in many countries.
BBCWatcher is online now   Reply With Quote
Old 13-03-2020, 09:06 AM   #1916
Supremacy Member
 
lingalong's Avatar
 
Join Date: Oct 2009
Posts: 6,352
Hi BBC,

Don’t mind if I ask you since the other threads are being swarmed..

I just tried converting $200 SGD to USD via the Phone App

It says order was executed at 1.4075, with 140 units bought under trade history. But when I go back to my portfolio, it shows me having 137USD + 2 SGD. If I reverse calculate, this only results in 194.82 SGD. Am I missing something?
lingalong is offline   Reply With Quote
Old 13-03-2020, 09:21 AM   #1917
Senior Member
 
Join Date: May 2018
Posts: 556
(Deleted by author)
kram62 is offline   Reply With Quote
Old 13-03-2020, 09:22 AM   #1918
Arch-Supremacy Member
 
Join Date: Jun 2010
Posts: 11,625
I just tried converting $200 SGD to USD via the Phone App

It says order was executed at 1.4075, with 140 units bought under trade history. But when I go back to my portfolio, it shows me having 137USD + 2 SGD. If I reverse calculate, this only results in 194.82 SGD. Am I missing something?
Try pulling up your statement across the past several days to see if there’s anything weird there.

My guess is that your portfolio readout is caught between your previous 200 SGD balance and settlement of your currency trade, and it’s only able to make a rough estimate based on some different exchange rate. So when the currency trade settles in a day or two you should see 140 USD.
BBCWatcher is online now   Reply With Quote
Old 13-03-2020, 09:55 AM   #1919
Member
 
Join Date: Oct 2018
Posts: 310
BBC,

I’m starting to question the value of bond funds given how much they have dropped in recent days. The lowering of interest rates is supposed to increase bond prices, since new bonds will have lower yield than existing ones. The only excuse that fund companies seem to have is that too many redemptions is causing this wedge between their bond fund price and reality. The whole purpose of holding bonds is for safety, but it seems they are not as safe in fund form.

I’ve only just started investing in bond funds for the first time in my life and I have no idea whether to just sit it out, or buy more given this apparent wedge. They claim this wedge issue will eventually be resolved in the coming weeks or months, so should I load up on more? I honestly don’t know if this is an opportunity or a threat!
celtosaxon is offline   Reply With Quote
Old 13-03-2020, 10:20 AM   #1920
Arch-Supremacy Member
 
Join Date: Jun 2010
Posts: 11,625
I’m starting to question the value of bond funds given how much they have dropped in recent days. The lowering of interest rates is supposed to increase bond prices, since new bonds will have lower yield than existing ones. The only excuse that fund companies seem to have is that too many redemptions is causing this wedge between their bond fund price and reality. The whole purpose of holding bonds is for safety, but it seems they are not as safe in fund form.

I’ve only just started investing in bond funds for the first time in my life and I have no idea whether to just sit it out, or buy more given this apparent wedge. They claim this wedge issue will eventually be resolved in the coming weeks or months, so should I load up on more? I honestly don’t know if this is an opportunity or a threat!
Lower prices should mean you find them more attractive.

I think if we’re honest with ourselves we knew there was a decent or better chance Herbert Hoover the Sequel would “nuke Denmark” metaphorically. (OK, so he nuked the U.S. Oooops.) Except for The Godfather and maybe The Terminator, the sequel is always worse. So we’ve just got to muddle through it until President Biden and Vice President (fairly soon to be President) Harris hire lots of competent public servants, with the help of Majority Leader Schumer and (please!) a no filibuster Senate. I think you just keep plugging away with monthly buys per normal, and we’ll emerge in 2021, most of us anyway. The first half of 2020 at least is just a write-off, really.
BBCWatcher is online now   Reply With Quote
Reply
Important Forum Advisory Note
This forum is moderated by volunteer moderators who will react only to members' feedback on posts. Moderators are not employees or representatives of HWZ. Forum members and moderators are responsible for their own posts.

Please refer to our Terms of Service for more information.


Thread Tools

Posting Rules

Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are On