I agree with you and I am also on the same boat. I was merely pointing to BBC's observations about apple Vs stock. They are all the same. If there was fear that apples prices are going to crash, people will stop eating apples and wait for an even better deal. Especially, if your bedroom is fully stocked with apples because you thought prices will keep going up.
All you can say is that it’s better to buy when the price is lower, if you’re trying to time markets. It’s a greater time, not necessarily the greatest.
But you make a good point. Why do people find it easy to buy more apples at the supermarket when they go on sale, but they do the opposite and sell stocks when they’re on sale? (Are these people raiding their refrigerators and selling their apples when their price at the supermarket is lower?) It’s the same basic principle. When something is less expensive, how about buying some more and stocking up? Toilet paper, cans of corn, beer, shares of stock, toothpaste.... They’re all the same in this respect.
Individual stocks can crash to zero, sure. But the entire developed world's business activities (IWDA)? That's not likely, and it's probably less likely than the chance that you're the proud owner of a box of canned corn contaminated with some highly concentrated poison.
Wow! That is a great post! I think the utility of bonds in a portfolio is to make you sleep well at night, during falls like today. My portfolio is down more than 4k today, just one day, but it is comforting to know that I have fixed income in my portfolio that is steady.
My fixed income is INR denominated bank fixed deposits in India, worth about 400k SGD. I also have some 100k SGD worth Indian equity unit trusts and some 60k in global equities unit trusts in my employer pension scheme. So total about 800k networth. No house, no CPF or anything else.
Yes.
My risk tolerance is low and my skills arent great. So I have to be conservative. I dont personally suggest 110-age as a one size fits all for everyone. Every person should find their own percentage based on risk tolerance and risk taking ability and then stick with the ratio.
True.
see n hear until sian alrdy
Do you want a yield of ~2.3% on a ~46 month AAA rated Singapore government bond? If you like that offer, buy it. If not, don't.
When you place a non-competitive bid, you will have to pony up 115% of the face value of the bond. That's partly because market interest rates are at about 2.3% for this type of bond, but the bond coupon is higher. So you will have to pay above face value (higher than par), which effectively drives down the coupon yield (3.125%) to current market interest rates (~2.3%).
You can, but you have to visit a bank branch and find somebody who can locate the correct paper form. And you have to do that tomorrow (Friday, October 26, 2018) since the auction is on Monday.
Because the Monetary Authority of Singapore publishes the going market yield for the benchmark 5 year bond every business day, on its Web site, and that's the current market yield.
No, it's not risky at all. It's actually the least risky item you can buy with Singapore dollars, because it's the safest place to park Singapore dollars. These AAA-rated Singapore government bonds trade within a very narrow range. And placing a non-competitive bid means you're assured that, if you're allocated bonds (which in all likelihood you will be, fully), you'll get the very best yield that anybody obtains in Monday's auction.
