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What other ways to earn regular passive income?

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Old 04-03-2017, 10:59 AM   #16
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I really disagree with this part, and I'll say it again. A STI-based ETF represents something like 1% of the world's equities, and obviously it's heavily concentrated in one lovely but demographically challenged, tiny country -- the same country holding every other asset on your list. That lack of portfolio diversification bothers me. We could quibble about exactly how much international equity diversification a "typical" Singaporean saver ought to have, but zero is the wrong answer, in my view.
what do u consider international exposure? if i buy stocks on sgx it means i have zero international exposure?
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Old 04-03-2017, 11:56 AM   #17
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Why do you put it this way? Just because many successful/popular "thought leaders" don't invest in foreign listed stocks, means they are right?

When I look at local investment bloggers, I think every one of them only invests in STI stocks. Even ASSI, I don't recall seeing him reveal any foreign stocks or ETFs.
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Old 04-03-2017, 12:04 PM   #18
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Just sharing my views, yes, many STI companies have international revenue, but is this overseas revenue even close to reflective of what the global economy requires?

With little FMCG, pharmaceuticals, IT exposure in STI, is STI a truly diversified etf?

Should we really be that concerned about FX risk, when macroeconomics concepts state otherwise? Or for that matter, is that risk really not commensurated with the grossly superior diversification a global index can offer?



what do u consider international exposure? if i buy stocks on sgx it means i have zero international exposure?
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Old 04-03-2017, 12:12 PM   #19
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Why do you put it this way? Just because many successful/popular "thought leaders" don't invest in foreign listed stocks, means they are right?
True, just because so many "thought leaders" / bloggers have 100% Singapore portfolios doesn't mean that is the right strategy.

My target is for my cash portfolio to be split 50/50 foreign/SG. CPFIS and SRS because of restrictions are mainly SG shares.

I wonder how to explain the extreme home country bias in local investment bloggers? Surely they have some investment knowledge (hope they are not throwing smoke in their blogs) so they have heard of the word "diversification". But they have made a conscious decision to avoid foreign stocks.
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Old 04-03-2017, 12:54 PM   #20
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When I look at local investment bloggers, I think every one of them only invests in STI stocks. Even ASSI, I don't recall seeing him reveal any foreign stocks or ETFs.
AK doesn't invest in foreign listed stocks (his own words). He does invest in stocks with overseas exposures.

True, just because so many "thought leaders" / bloggers have 100% Singapore portfolios doesn't mean that is the right strategy.

My target is for my cash portfolio to be split 50/50 foreign/SG. CPFIS and SRS because of restrictions are mainly SG shares.

I wonder how to explain the extreme home country bias in local investment bloggers? Surely they have some investment knowledge (hope they are not throwing smoke in their blogs) so they have heard of the word "diversification". But they have made a conscious decision to avoid foreign stocks.
Very simple: buy what you understand best. On top of that, focus fire on the stocks that you understand best. They don't take the shotgun approach.
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Old 04-03-2017, 12:59 PM   #21
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My target is for my cash portfolio to be split 50/50 foreign/SG. CPFIS and SRS because of restrictions are mainly SG shares.

I wonder how to explain the extreme home country bias in local investment bloggers? Surely they have some investment knowledge (hope they are not throwing smoke in their blogs) so they have heard of the word "diversification". But they have made a conscious decision to avoid foreign stocks.
On SRS and CPFIS, I foresee that will be a struggle for me as well. SRS/CPFIS restrictions effectively forces us to either stockpick Singapore equities/ buy ETFs, or buy unit trusts with foreign equities exposure. So am I right all in, your portfolio is still heavy on SG shares if you take into cash and SRS/CPF? I probably only invest in STI ETF for my SRS/CPF OA, but since I am not a high earner, my projections point out that I will exceed my 15% overall exposure in SG-listed equities if I were to invest in SG sgares through SRS/CPF OA.

I dont think very positively on local bloggers, frankly. Yes, most of them may be altruistic and do it out of interest and passion, but also because of doing it for interest they have a tendency to interact with people of the same mindset (a sinkie tendency, no doubt), rather than challenge their own thinking. Just take a look at ASSI facebook page.

Quite recently there was a reader commenting that he should share more on his failures and bad picks. ASSI immediately (IMO) self-victimise himself and say things like "yea maybe i should take a break from blogging, since my sharing has adverse impacts on readers" and lol all the ASSI white knights come in and comfort him. The point is, under an environment where like-minded people seek each other, and just parrot each other, can these bloggers give a truly learned, informed and balanced view?

Anyway the post is on 26 feb

My response to a very long reply from W Y.
It is too long to reproduce here. If you want to read it, go to my blog's comments section:
http://singaporeanstocksinvestor.blo.../hock-lian-se…
Sounds like I have to shoulder more responsibility if I want to continue blogging. Not something I want to do.
I am working on a couple of new blog posts now. It would be a shame to stop halfway. I will complete them and then take another break; this time, it will be a longer one.
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Old 04-03-2017, 01:04 PM   #22
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Just sharing my views, yes, many STI companies have international revenue, but is this overseas revenue even close to reflective of what the global economy requires?

With little FMCG, pharmaceuticals, IT exposure in STI, is STI a truly diversified etf?

Should we really be that concerned about FX risk, when macroeconomics concepts state otherwise? Or for that matter, is that risk really not commensurated with the grossly superior diversification a global index can offer?
i agree with wat u said, but im not arguing about how diversified STI EFT is. In fact, one thing i notice about some forumers here is that the word ETF alone seems to be synonymous with an ideal diversification strategy with no consideration of the underlying basket of stocks.

im jus pointing out that investing in STI ETF dosnt mean u have zero international exposure.
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Old 04-03-2017, 01:11 PM   #23
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I see i see...

For discussion purposes only, would like to point out that aside from the banks, probably the rest of the index has more overseas revenues than SG revenues.

Individuals favouring local equities should probably be aware that they are already compromising on FX risks...

i agree with wat u said, but im not arguing about how diversified STI EFT is.

im jus pointing out that investing in STI ETF dosnt mean u have zero international exposure.
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Old 04-03-2017, 01:26 PM   #24
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Very simple: buy what you understand best. On top of that, focus fire on the stocks that you understand best. They don't take the shotgun approach.
That can work. Back to limsters point, sadly looking at investing from an asset class/geographical diversification angle, even though very straightforward, is boring AF, and just don't generate as much attention/ readership.

I used to follow cheerfulegg.com to understand more about passive investing, but frankly after perhaps half a dozen blog post you get 90% of the idea. Now all the stuff written is on random musings, not like the sexciting stuff Singaporean stock pickers can write (" buy Sheng shiong! Recession-proof! CANT LOSE MONEY ONE!!!!" " BUY SMRT! BUY WHAT YOU KNOW AND USE DAILY!!!")

In the end, like in mm/ssi, the index/passive investors just get crowded out by the stockpicking forummers/bloggers. That's just sad...
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Old 04-03-2017, 01:36 PM   #25
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There is nothing to write w.r.t. index investing. It's just robotic application of DCA.
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Old 04-03-2017, 01:40 PM   #26
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Index and relax! 1hr saved reading AR FS is 1hr saved to hit the gym (health)!
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Old 04-03-2017, 01:53 PM   #27
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Why index investing or stock pick?

A blog post by Damodaran: http://aswathdamodaran.blogspot.sg/2...-peace-or.html
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Old 04-03-2017, 04:32 PM   #28
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With little FMCG, pharmaceuticals, IT exposure in STI, is STI a truly diversified etf?
No.

Are any of these other sectors represented except in trace amounts, at most?

energy (oil, gas, solar, wind, etc.)
electricity generation
electricity distribution
aerospace
defense (e.g. Lockheed)
casino gaming
cultural exports (films, video games, book publishing, etc.)
plastics
chemicals
waste management
nuclear engineering
hospitals
medical equipment
biological sciences (e.g. seed development)
apparel (e.g. Zara)
luxury goods (e.g. Tiffany)
mining
restaurants (e.g. Starbucks)
temporary staffing
tobacco
payment networks (e.g. Visa)
education and training
home appliances (e.g. Whirlpool)
retailing (e.g. Amazon, Tesco)
advertising (e.g. JCDecaux)
railways (e.g. CSX)
sporting goods (e.g. Nike)
trucking (e.g. J.B. Hunt)
vehicle manufactuers (e.g. Bombardier, BMW)

?

I could list some more sectors, but that's already a long list, isn't it?
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Old 04-03-2017, 08:25 PM   #29
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That can work. Back to limsters point, sadly looking at investing from an asset class/geographical diversification angle, even though very straightforward, is boring AF, and just don't generate as much attention/ readership.

I used to follow cheerfulegg.com to understand more about passive investing, but frankly after perhaps half a dozen blog post you get 90% of the idea. Now all the stuff written is on random musings, not like the sexciting stuff Singaporean stock pickers can write (" buy Sheng shiong! Recession-proof! CANT LOSE MONEY ONE!!!!" " BUY SMRT! BUY WHAT YOU KNOW AND USE DAILY!!!")

In the end, like in mm/ssi, the index/passive investors just get crowded out by the stockpicking forummers/bloggers. That's just sad...
If an investor is set on an investment style and methodology, and if he/she decides to blog about it, there could only be that much to write about. It is like writing a textbook on a subject - if all the points and syllabus are being covered, there is nothing much to write on except for certain special scenarios and applications of it.

For my case, I would espouse my method, but if you meet me long enough you would have noticed that I would be saying the same thing over and over again.
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Old 04-03-2017, 08:35 PM   #30
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Just sharing my views, yes, many STI companies have international revenue, but is this overseas revenue even close to reflective of what the global economy requires?

With little FMCG, pharmaceuticals, IT exposure in STI, is STI a truly diversified etf?

Should we really be that concerned about FX risk, when macroeconomics concepts state otherwise? Or for that matter, is that risk really not commensurated with the grossly superior diversification a global index can offer?
Diversification as in sector and country, no, but I believe diversification should be done first on the highest degree, that of asset classes.
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