Official Shiny Things thread—Part III

[swan02]

Can I ask what you would recommend then? Thanks.

1.Go research on these

2822; 2823; 2846

2. Be aware of their very high volatility and its historical crashes, as these etfs are plagued by a lot of retail investors who would flee at the slightest nonconfidence. However, adjust your allocation to these according to your risk appetite....but don't end up 50 percent of your overall equity. In fact, if ya mainly 90 percent in iwda, 10 percent in these sounds ok.

3. If I'm not mistaken, were you the lady who were asking comments on whether you needed certain insurances ?

If so, I suggest you spend some time understanding what risk adjusted returns is and why they are important, especially in your case as you don't have anything (job) to fall back on.

4. Simply in my understanding, a high risk adjusted return portfolio improves your chances of beating a risk free asset. It reduces the risk of high draw downs, hence you don't need to make 100 percent return after a 50 percent drop. As a result, lowers your chances of facing a tragic sequence of returns risk.

5. That at least to me is the most important criteria. And the good news, these high risk adjusted returns etfs are pretty good at giving a decent annualised return. No wonder Charlie Munger owns so much Costco (too expensive imo).

6. Find out in your homework, whether these china etfs have high risk adjusted returns. I doubt so.

7. Some high risk adjusted returns etfs eg (past is not indicative of future returns). are: QQQ (very high risk but very high returns), VUSD (high risk, high returns),
SXLP (defensive) or their world equivalent, SXLV (defensive) or their world equivalent. Blend them to suit your risk appetite. I believe especially given the high price of bonds, we should instead seek it within equities.

8. Anyone wish to comment on high risk adjusted returns strategy ? especially when a low risk appetite seeks higher returns.

 

[chrisloh65]

Tiger is as safe as IB SG or any Singapore (non-bank) brokers, so you figure?

And I would recommend that you don't put your cash and stocks in custody with IB SG or Tiger or any Singapore (non-bank) brokers because the safety net is not there.

Because of safety concerns, that is why Singapore-listed stocks are held by CDP by default if you buy them through non-bank Singapore brokers!

People who are old enough would know about Pan-Electric crisis and why Singapore-listed stocks are held by CDP (instead of Singapore brokers!).

tiger broker is safe or not? It is definitely the cheapest out there. But china company. ST, Any take on this broker?

 

[chrisloh65]

Question: How you define risk?

Without proper definition of "risk", we can't define what constitutes high "risk-adjusted returns" as well.

1.Go research on these

2822; 2823; 2846

2. Be aware of their very high volatility and its historical crashes, as these etfs are plagued by a lot of retail investors who would flee at the slightest nonconfidence. However, adjust your allocation to these according to your risk appetite....but don't end up 50 percent of your overall equity. In fact, if ya mainly 90 percent in iwda, 10 percent in these sounds ok.

3. If I'm not mistaken, were you the lady who were asking comments on whether you needed certain insurances ?

If so, I suggest you spend some time understanding what risk adjusted returns is and why they are important, especially in your case as you don't have anything (job) to fall back on.

4. Simply in my understanding, a high risk adjusted return portfolio improves your chances of beating a risk free asset. It reduces the risk of high draw downs, hence you don't need to make 100 percent return after a 50 percent drop. As a result, lowers your chances of facing a tragic sequence of returns risk.

5. That at least to me is the most important criteria. And the good news, these high risk adjusted returns etfs are pretty good at giving a decent annualised return. No wonder Charlie Munger owns so much Costco (too expensive imo).

6. Find out in your homework, whether these china etfs have high risk adjusted returns. I doubt so.

7. Some high risk adjusted returns etfs eg (past is not indicative of future returns). are: QQQ (very high risk but very high returns), VUSD (high risk, high returns),
SXLP (defensive) or their world equivalent, SXLV (defensive) or their world equivalent. Blend them to suit your risk appetite. I believe especially given the high price of bonds, we should instead seek it within equities.

8. Anyone wish to comment on high risk adjusted returns strategy ? especially when a low risk appetite seeks higher returns.

 

[swan02]

Question: How you define risk?

Without proper definition of "risk", we can't define what constitutes high "risk-adjusted returns" as well.

Being in this forum, unless I'm mistaken, that the concepts are largely based on the "modern portfolio theory" (MPT). The definition of risk is also clearly defined in this body of knowledge.

We even had an engineering student once putting out a graph on this forum seeking the best risk adjusted return AA he can get factoring our sti/iwda(can't remember if he did this one)/bonds onto the efficient frontier and leveraging on it. Clearly he understood this concept.

High or Low, depends on the context which is ever changing and can't be defined in strict numbers.

But generally, a 20 (equity)/80 (high quality bonds) or 30/70 generally has one of the best risk adjusted returns. This is what I call high risk adjusted portfolio. It is a well known phenomena.

However, speaking just with equity in isolation. A 30% (VUSD)/70%(XLV,XLP) AA, will (I'm guessing), historically, will provide high risk adjusted returns. Cuz I know that XLV, and XLP do have one of the highest risk adjusted return sectors. I will post the optimal AA once I've learnt PowerBi.

anyways, risk is defined in other many ways e.g. liquidity etc, and you have your own.

but definitely not in this case, as I clearly used the term "risk adjusted returns" which is readily and commonly used in the literature and understood by many.

 

[newjersey]

Tiger is as safe as IB SG or any Singapore (non-bank) brokers, so you figure?

And I would recommend that you don't put your cash and stocks in custody with IB SG or Tiger or any Singapore (non-bank) brokers because the safety net is not there.

Because of safety concerns, that is why Singapore-listed stocks are held by CDP by default if you buy them through non-bank Singapore brokers!

People who are old enough would know about Pan-Electric crisis and why Singapore-listed stocks are held by CDP (instead of Singapore brokers!).

this is the reason why ST attracts while chrisloh65 repels.

this is the most ignorant statement to equate IB US w local bank brokers / poems.

money in IB US is insured to the last cent, regardless of size.
(guess chrisloh65 is ignorant or not at that level to know such imputed knowledge.)

 

[newjersey]

Question: How you define risk?

Without proper definition of "risk", we can't define what constitutes high "risk-adjusted returns" as well.

equity risk premium = the excess returns from the market - risk-free rate.

use this when lost.

seriously, i love getting surrounded by more of you in real-life.

makes me feel superior.

love to meet u in real life, to see the face of a L'ser in person.

 

[BBCWatcher]

money in IB US is insured to the last cent, regardless of size.

I assume you're referring to the U.S. Securities Investor Protection Corporation (SIPC). SIPC covers up to US$500,000 of assets with a sublimit of US$250,000 for cash. There are fairly straightforward ways to multiply the US$500,000 worth of coverage. Using the SIPC's own example, let's assume Joe and Mary are married. If they each have individual accounts plus a joint account then they would have up to US$1.5 million of SIPC coverage. If Joe also has an Individual Retirement Account (IRA) then that account gets another US$500,000 of coverage. Only slightly clever account titling can multiply SIPC coverage.

Those are coverage limits not recovery maximums. The SIPC still acts on behalf of account holders to recover all assets if possible. SIPC coverage and recovery is based on fair market value. The SIPC does not protect against fluctuations in financial market prices, and it does not protect against an inability to trade if/when a broker fails.

In contrast, Singapore has nothing like the SIPC. There is no equivalent or similar protection among Singaporean entities -- there's zero government backstopped insurance.

 

[narutos]

Have. 2.98 is made up of 1 type CN government bond. 3.2 made up of 4 types but all GLCs.

IMO, principal protect for now. Don't take unnecessary risk until the 'fog' clears.

What do you meant by the `fog`? Are there something looming in china now?