Official Shiny Things thread—Part III

[Okenba]

Let's say USD go up to 1.8 or 2.4 and keeps on increasing. Will it still be worthwhile to invest in USD denominated tickers when the rate falls back to say 1.3 in future? You might get in at lower price but suffer from FX ?

Sent from HUAWEI VOG-L29 using GAGT

Really, 1.8-2.4?
Honest question as I do not know forex history. Far as I can tell, we have not broken above 1.5 or so in the past 10 years...

 

[flowerpalms]

Truth be told, iwda has continued to dip below 50.

Stay on course and dca monthly. Don't time the market. Buy the ups and downs.

 

[MichealScott]

IWDA doesn't pay out dividend, so your IWDA unit price should increase with dividends received by this ETF.

And yes, you are back to square 1 after 4 years (with all dividends gone into smoke)!

It is scary to see that S&P and DJIA had gone down by 30% within a span of 4 weeks isn't it? Not surprising to me because every market cycles will be different anyway.

Sorry I don't get the part of unit price increase with dividend received..can you elaborate ? Thanks!

Sent from Stamford Bridge using GAGT

 

[Okenba]

Sorry I don't get the part of unit price increase with dividend received..can you elaborate ? Thanks!

Sent from Stamford Bridge using GAGT

If an ETF pays out dividends and drops to 2017 levels, you can still say you received dividends out of it, so the guy who bought in 2017 is still slightly better off than buying now because of dividends.

If an ETF does not distribute dividends, the returns are entirely reflected in the price. If price goes down to 2017 levels, there is no difference between buying at 2017 and buying now. You effectively lose money as you could have just put your 2017 money in the bank and withdraw it now to buy in.

 

[tesarise]

Not everyone counts their emergency cash as part of their portfolio. So long as they know what they are doing

I agree. But holding a substantial amount in cash yet claiming to be 100% in equities is a bit of mental gymnastics

 

[streetfighter]

Luckily i sold almost all my stock ETFs near the peak about 2 weeks ago! Now the price is like almost 30% lower, & i have a lot cash to buy at cheap price. So seems like timing out and in with ETF is better?

Truth be told, iwda has continued to dip below 50.

Stay on course and dca monthly. Don't time the market. Buy the ups and downs.

 

[revhappy]

Just look at MBH, WTF! It is down about 2% in 2 days. Cash is the real king, in times like this. **** Ray Dalio for calling cash trash at the worst possible time.

 

[peipei1]

I wonder if Berkshire is jumping in right now. I think they had around 122B in cash laying around. Buffet said there wasn't any real value out there to spend it on. There has to be some value now or coming up soon.

 

[moolala]

I wonder if Berkshire is jumping in right now. I think they had around 122B in cash laying around. Buffet said there wasn't any real value out there to spend it on. There has to be some value now or coming up soon.

he was waiting for this to happen
how does he know what is valued and undervalued?

 

[peipei1]

This could turn out to be a period of reckoning for passive etf buyers facing their first bear crash. The froth was there with the late stage IPOs, weed stocks pump and free trading from Robinhood.

 

[peipei1]

he was waiting for this to happen
how does he know what is valued and undervalued?

I'm curious what Buffet is thinking right now. He got all sorts of criticism for having so much in cash but Berkshire was just waiting for opportunities to invest. They're probably salivating and ready to pounce on the opportunities now.

 

[chrisloh65]

Buffett kept more than 1/3 of his total portfolio in cash, postulating that this stock market is already at bubble stage and bursting is just a matter of time.

We won't know what he think, but you can wait and see when he starts to act.
Now is probably too early to buy stocks because no economic recession ends in a month or even 6 months (+ the fact that we are not even in actual recession yet).

I'm curious what Buffet is thinking right now. He got all sorts of criticism for having so much in cash but Berkshire was just waiting for opportunities to invest. They're probably salivating and ready to pounce on the opportunities now.

 

[redglue23]

So these are the quick and dirty monthly average closing prices if you have DCA faithfully since the stated dates. Current price of IWDA is $47.67, looks to fall again today, so in short, if you have not DCA and thought that you missed the boat, the good news is that if prices dipped below $45.15, you would have been in the same position that those who have been DCA since June 2012.

DCA Since
Jun-12 $45.15
Jan-13 $46.40
Jan-14 $47.92
Jan-15 $49.55
Jan-16 $51.33
Jan-17 $54.24
Jan-18 $56.29
Jan-19 $57.66
Jan-20 $57.80

Data from Yahoo finance seems corrupted before Jun-12, so that was the furthest I could go.

 

[peipei1]

Dca index etf passively may no longer be a thing after this pans out. Every crisis brings a new perspective. What then is the next big investing strategy for the average person?

 

[new_bie]

Is it a good time to secure/accumulate some gold as well now?

Since gold is taking a dive as well.

 

[_dXter]

Also means that those who had just started this DCA journey, good for you.

So these are the quick and dirty monthly average closing prices if you have DCA faithfully since the stated dates. Current price of IWDA is $47.67, looks to fall again today, so in short, if you have not DCA and thought that you missed the boat, the good news is that if prices dipped below $45.15, you would have been in the same position that those who have been DCA since June 2012.

DCA Since
Jun-12 $45.15
Jan-13 $46.40
Jan-14 $47.92
Jan-15 $49.55
Jan-16 $51.33
Jan-17 $54.24
Jan-18 $56.29
Jan-19 $57.66
Jan-20 $57.80

Data from Yahoo finance seems corrupted before Jun-12, so that was the furthest I could go.

 

[coralsg]

NAV pricing for IWDA

Shiny and Experts, is the NAV and hence the share price of IWDA real time reflective of the market value of its components...I ask because of the great volatility of prices ...and IWDA is traded in LSE but many of its components are in a different time zone eg NYSE ...

I am not expert, correct me if I've misunderstood.

Based on the links below, the price of IWDA is a function of supply and demand as traded on all secondary markets. However the traded price should have some link to the NAV (net asset value) of IWDA. There is attempt to price the NAV real time (read the section on iNAV), but with some limits due to time zone and trading hour differences (etc...), NAV might not capture the underlying stock price....


www ishares com/uk/individual/en/literature/prospectus/ishare-iii-plc-en-emea-prospectus.pdf

Read section on Publication of Net Asset Value and Net Asset Value per Share and Indicative Net Asset Value

www ishares com/uk/individual/en/literature/fact-sheet/swda-ishares-core-msci-world-ucits-etf-fund-fact-sheet-en-gb.pdf

Read Important Information

This is where you can see the indicative NAV (please note this is valued in EUR)
www boerse-frankfurt de/en/etf/ishares-core-msci-world-ucits-etf

This is where you can see the bid-ask on LSE (please note this is priced in USD)
www londonstockexchange com/exchange/prices-and-markets/ETFs/company-summary/IE00B4L5Y983IEUSDEUET.html?lang=en

 

[coralsg]

Correct me if I’m wrong, but in IBKR you can only convert SGD to USD in minimum amount of 1K SGD witb increment of 1k?

And the steps (taken from old post)

1) Transfer Money into IBKR
2) Open TWS, select USD.SGD
3) Click on +, set destination to FXCONV
4) Set Buy
5) In the amount, change to SGD and set the amount of SGD to exchange to USD
6) Make sure LMT is selected, click on Ask +100% (or more)
7) Submit

Correct?

If I opened IBKR as per above, and not trade yet. Can anyone share when does IBKR start to charge me? I understand that there is a $10 min monthly fee?

 

[chrisloh65]

https://www.cnbc.com/2020/03/12/el-...t-from-high-as-world-goes-into-recession.html

Reading the above, "those who had just started" may not be good, better wait some time then start better because:

- Economist Mohamed El-Erian said Wall Street talk of a quick down and up won’t become a reality.
- He said the market chart would look like a “U” or an “L,” not a “V.”

Also means that those who had just started this DCA journey, good for you.

 

[13luetooth]

Hi Shiny things.

Would u still recommend mixture of STI ETF, IWDA and A35 portfolio mixtures?

Whats the pros and cons between A35 and MBH for bond segment in the portfolio?