Official Shiny Things thread—Part III

[revhappy]

As I type this, bid/ask is as follows:

• A35: 1.224/1.230 (0.006 or 0.49%)
• MBH: 1.039/1.045 (0.006 or 0.58%)

The spread of A35 is only slightly better than that of MBH. Not sure how you relate spread to "safe".

If you are referring to price increase, both A35 and MBH increased in price recently. By looking at charts, the increase in A35 seems to be a bit more than that of MBH, but not by much.

The 1.045 ask that you see, is someone just placed the order. Without that the market maker ask is 1.047 right now. Btw this is good for intraday trading. Place 0.1 cent better than bid and wait to be bought and then 0.1 cent better than ask and wait to be sold.

 

[swan02]

wow it’s been so long and yet MBH is still being promoted.

The reason for having bonds is to ensure u don’t go crazy and sell sell sell in times like this and not about long term returns Of bonds as preached by shiny.

Hence A35 still ranks king cuz it holds sgd govt bonds. Mbh and A35 unfortunately r illiquid as hell hence inefficient resulting in wide spreads. mbh etf is a mistake, cuz fans of shiny made a35 liquidity even worse resulting in both etfs being sub par. Iglo, idtl, ibtm, vdty are just some alternatives to counter these inefficiencies.

One month
mbh performance +1percent
A35 performance + 4 percent

Need I say more ??

That is why MBH is important for ur portfolio.

As IWDA continues to dip, please be reminded not to rush in and buy buy buy just because the price going down. Be disciplined, stick to monthly Dca and also don't panic sell

 

[BBCWatcher]

The reason for having bonds is to ensure u don’t go crazy and sell sell sell in times like this and not about long term returns Of bonds as preached by shiny.

That may be your reason, but that's not the reason.

Hence A35 still ranks king cuz it holds sgd govt bonds.

"King" for what?

 

[MrHighlander]

Is there a good Europe UCITS to consider buying ?

Looking to get some continental Europe exposure

TQ

Posted from MaMaMia HardwareZone Forums app

 

[flowerpalms]

I remember you are anti shiny

wow it’s been so long and yet MBH is still being promoted.

The reason for having bonds is to ensure u don’t go crazy and sell sell sell in times like this and not about long term returns Of bonds as preached by shiny.

Hence A35 still ranks king cuz it holds sgd govt bonds. Mbh and A35 unfortunately r illiquid as hell hence inefficient resulting in wide spreads. mbh etf is a mistake, cuz fans of shiny made a35 liquidity even worse resulting in both etfs being sub par. Iglo, idtl, ibtm, vdty are just some alternatives to counter these inefficiencies.

One month
mbh performance +1percent
A35 performance + 4 percent

Need I say more ??

 

[swan02]

That may be your reason, but that's not the reason.
It is not my reason, but by many experts as to the reason for having bonds. when bonds are referred in an asset allocation. it is always linked to a safe haven GOVT bond. NEVER a corporate bond. Bonds are there for two fundamental reasons which is to protect u from yourself and rebalancing. u might as well keep close to 100 percent equity if long term returns is the focus.

"King" for what?

It’s just a figure of speech between mbh and a35

 

[flowerpalms]

You anti Shiny then dont talk so much

It’s just a figure of speech between mbh and a35

 

[swan02]

U need to ask yourself why do u keep bonds.
If u want long term returns. Just 100 percent equity and don’t need to think too hard

I remember you are anti shiny

 

[hwckhs]

It’s just a figure of speech between mbh and a35

Can you help to prove that MBH yields a lower return if we are able to hold it for the long term?

I am aware that MBH may not increase as much as A35 does in a crisis, and may even drop in a major crisis (but unlikely in the same magnitude as stocks). Corporate bond has higher correlation to stocks than sovereign bond after all. However, if MBH continues to pay dividends, and I continue to hold and DCA, why would it matter?

Nonetheless, I agree that people who strongly expect/demand the bond to be able to withstand a major crisis should stick to A35/SSB. You simply need to know the characteristics of the bond you are buying, and not demand what it cannot offer.

 

[tesarise]

I remember you are anti shiny

Resorting to attacking the person rather than the addressing the arguments now?

 

[swan02]

let’s see A brief about how damaging mbh is to a retired couple in a 30/70 portfolio.

Equity -20 percent x0.3 = -6 %
Mbh. +1 percent x0.7 = +0.7%
Net -5.3 percent

Whereas with a35.
Your net is -2.8%

what if we get gfc style 50 percent crash ?

A retired couple facing sequential risk with mbh would be destroyed ! This is morally irresponsible ! I bet you some people are already selling up because your mbh did ****.

A35 isn’t great but is the best we have in sgd. due to longer duration and govt bonds vs mbh. For that reason, people Also need to consider idtl and iglo. They r of greater risk with fx risk hence u keep a smaller percentage. and it works. I have a 25/75 allocation... I can sleep at night. ...I don’t even want to go into sg reits, gold.

 

[swan02]

Just google it and u will find at least two research articles rebutting the notion of corporate bonds. In summary On the surface corporate bonds appear worthy however when rebalancing is included, the govt bonds did just as well with greater sequential risk protection ! . U will find this consistent in and I bet all research articles comparing Corp vs govt bonds.

And we all know especially when u deal with big money like I do as I’m retired that we r all humans. Many of us get greedy and fearful. Long term returns mean nothing when u bail out. It is too difficult already managing human emotions.

If u have never faced gfc and a money large enough to scare the shits out of u. U will never learn. This year might serve u well. If u r dca and portfolio is still pittance... u will not learn.

Can you help to prove that MBH yields a lower return if we are able to hold it for the long term?

I am aware that MBH may not increase as much as A35 does in a crisis, and may even drop in a major crisis (but unlikely in the same magnitude as stocks). Corporate bond has higher correlation to stocks than sovereign bond after all. However, if MBH continues to pay dividends, and I continue to hold and DCA, why would it matter?

Nonetheless, I agree that people who strongly expect/demand the bond to be able to withstand a major crisis should stick to A35/SSB. You simply need to know the characteristics of the bond you are buying, and not demand what it cannot offer.

 

[flowerpalms]

Theres no need to address argument if the person is against shiny in the very first place

Anti shiny dates a long way back

Resorting to attacking the person rather than the addressing the arguments now?

 

[culepico]

Theres no need to address argument if the person is against shiny in the very first place

Anti shiny dates a long way back

No wonder Singaporeans only pray to PAP. There is no need to argue because PAP is always right right?

 

[kram62]

Theres no need to address argument if the person is against shiny in the very first place

Anti shiny dates a long way back

Theres no need to address argument if the person is pro shiny fanatic in the very first place

Pro shiny fanatic dates a long way back

FTFY

 

[flowerpalms]

Dont twist what i say and dont link to politics

No wonder Singaporeans only pray to PAP. There is no need to argue because PAP is always right right?

 

[ranchfarm]

MBH is kind of weird for a corporate bond etf cos it's full of govt agencies? HDB, LTA, PUB, Temasek. It seems closer to an aggregate bond like VAGU/AGGU.

 

[culepico]

Dont twist what i say and dont link to politics

Sure, let me put it back into context.

No wonder you only pray to shiny. There is no need to argue because shiny is always right right?

One person is right doesn't mean another person is wrong. Forums are meant for discussions.

 

[justwakeup]

They're pretty similar, but CSPX is an accumulating fund and VUSD is a distributing fund. The direct competitor to CSPX is VUAA, which is the accumulating version of VUSD.

"Accumulating" means that the fund manager takes the immediate after-tax dividends and automatically reinvests them, buying additional shares of stock within the fund. Consequently each share of the fund holds progressively more shares of stock over time (and becomes more valuable, other things being equal). "Distributing" means the fund manager distributes the immediate after-tax dividends to fund shareholders who then can do basically two things: spend the dividends (on iPhones, apples, lottery tickets, beer, or whatever), or reinvest the dividends. "Accumulating" is generally the wise choice for long-term investors because it's automatic and could help cut down on broker commissions associated with reinvesting. Either way there's absolutely no problem buying goods and services when it comes time to do that: just sell some shares, remit the proceeds, and buy your spaghetti (or whatever).

Hi BBCW, not sure if i am getting what you mean. Does "accumulating" mean we are getting a little more unit?

 

[makav31i]

Sure, let me put it back into context.

No wonder you only pray to shiny. There is no need to argue because shiny is always right right?

One person is right doesn't mean another person is wrong. Forums are meant for discussions.

This thread is for his fanbois to regurgitate his book ideas not to have a discussion...They said it many times that the purpose of the Shiny Things thread is to only discuss the 3 fund portfolio...