Official Shiny Things thread—Part III

[flowerpalms]

Domt play margin

I have a margin account.

 

[Purplestars]

Lol c'mon Shiny the A35 vs Bank accounts debate is pretty much over now. The real events unfolding right now is proving you wrong. The problem here is that beginners can't understand what is happening and are easily misled by your misinformation.

A35 and MBH have tanked together with stocks. Anybody trying to rebalance their portfolios now will be eating losses when selling either bond funds.

It is amazing that you have no answer to this and yet just tell people to ignore this argument. You are doing a disservice to the ignorant just to peddle your book.

In a real crisis, cash is king. You don't see Buffett buying bonds instead of hoarding cash. Also note that it is disingenuous to compare our local bonds with US treasuries due to our lack of liquidity.

I'm losing respect for you by the day. Instead of improving your product and addressing what has happened, you simply reiterate your old material and try to shape it to fit what has actually happened while just telling others to ignore genuine questions you cannot answer. This is as getting near CCP levels of brain washing

 

[highsulphur]

Domt play margin

If you don't understand my question, pls don't answer

 

[highsulphur]

Lol c'mon Shiny the A35 vs Bank accounts debate is pretty much over now. The real events unfolding right now is proving you wrong. The problem here is that beginners can't understand what is happening.

A35 and MBH have tanked together with stocks. Anybody trying to rebalance their portfolios now will be eating losses when selling either bond funds.

It is amazing that you have no answer to this and yet just tell people to ignore this argument. You are doing a disservice to the ignorant just to peddle your book.

In a real crisis, cash is king. You don't see Buffett buying bonds instead of hoarding cash. Also note that it is disingenuous to compare our local bonds with US treasuries due to our lack of liquidity.

I'm losing respect for you by the day. Instead of improving your product and addressing what has happened, you simply reiterate your old material and try to shape it to fit what has actually happened while just telling others to ignore genuine questions you cannot answer. This is as getting near CCP levels of brain washing

A35 didn't tank. It went higher initially with MBH on interest cuts but came off later. Net they are the same price as ex Div in Jan. MBH came off a bit more but just marginally below ex Div.

 

[zoneguard]

Lol c'mon Shiny the A35 vs Bank accounts debate is pretty much over now. The real events unfolding right now is proving you wrong. The problem here is that beginners can't understand what is happening.

A35 and MBH have tanked together with stocks. Anybody trying to rebalance their portfolios now will be eating losses when selling either bond funds.

It is amazing that you have no answer to this and yet just tell people to ignore this argument. You are doing a disservice to the ignorant just to peddle your book.

In a real crisis, cash is king.

I happen to politely disagree with your views. In AA, both bonds and cash have their place and serve specific functions. I don't think investors should hold only equities and cash and expect cash to perform the role of bonds in AA.

The events of the past week have certainly caused distress to all vested investors but if investors believe in MPT, then bonds still have their role to play.

In the local context, A35 and MBH are bond instruments available to the retail investors and Shiny's arguments for them are fundamentally sound and I find it is reasonable to recommend them. I read his book and find most of his reasoning logical and follow some of them - not all of them but all investors should do their due diligence with regards to their investments and not follow blindly anybody's advice.

I also hold cash in bank accounts and SSB. The emergency funds portion should never be invested in my view.

I hold A35 and cash in the ratios appropriate for my AA plan.

A SG Boglehead

 

[swan02]

Shiny, u r always fond of making assumptions or missing of what I wrote.

I blatantly made it clear research supports little for foreign bonds. U have drilled many regarding fx risk and volatility, must I repeat?

And I never used the term “volatility “with safe haven assets n never seen this term negatively. I hold gold and idtl exactly !

When I’m free, and since I’m done with mbh...I’ll write rebutting your views regarding reits, gold and long durations and asset allocation and retirement planning. If people can’t even tell how mbh is inferior to a35, no point going into certain controversial topics. Sometimes it pays to consult a reputable full fee financial planning arm for a second opinion.

My conservative portfolio has done very well. Thank u asset allocation 20/80. foreign and local bonds, gold and even sg reits.

1. iglo being illiquid is still more liquid than mbh or a35. I’ve cleared 50k easily 30min to 1 hr several times.
2. Many foreign bond
Etf are quite illiquid except idtl. I can trade 100k idtl in 5 mins.
3. So if u want to trade 500k of bonds urgently cuz your allocation changed or rebalance . U own all of them including mbh I so dislike. Even cbu7.ae if needed for overall improved liquidity. It works.
4. I could trade 200k foreign bonds excluding idtl in 1 hr.
5. 65k sgd bonds buy or sale of combimed mbh and a35 in a day was my record having to undercut many as I was desperate. It’s bloody damn hard and I’m not always willing to sell or buy from many who goes around mbh n a35 getting them cheap from desperate. Spread could widened so widely Especially second half day and prices can be ridiculous. Took me close to 6
Months amassing 500k sg bonds. Ridiculous.
6. Liquidity ranks highly to me and Im certain To many high net worths. Many are known to change their mind wanting to buy a property they have seen paying in cash. Sell 1 million mbh ? if u r willing to accept donkey prices no problem.

 

[Purplestars]

A35 didn't tank. It went higher initially with MBH on interest cuts but came off later. Net they are the same price as ex Div in Jan. MBH came off a bit more but just marginally below ex Div.

I'm not comparing A35 vs MBH, this is an argument for you Shiny fans alone.

I'm saying that both A35 and MBH aren't the best instruments to use as a safe haven to store wealth.

 

[Purplestars]

I happen to politely disagree with your views. In AA, both bonds and cash have their place and serve specific functions. I don't think investors should hold only equities and cash and expect cash to perform the role of bonds in AA.

The events of the past week have certainly caused distress to all vested investors but if investors believe in MPT, then bonds still have their role to play.

In the local context, A35 and MBH are bond instruments available to the retail investors and Shiny's arguments for them are fundamentally sound and I find it is reasonable to recommend them. I read his book and find most of his reasoning logical and follow some of them - not all of them but all investors should do their due diligence with regards to their investments and not follow blindly anybody's advice.

I also hold cash in bank accounts and SSB. The emergency funds portion should never be invested in my view.

I hold A35 and cash in the ratios appropriate for my AA plan.

A SG Boglehead

This is the key point. You can have good arguments for holding bond funds, but you must not pretend they are equivalents to cash like Shiny is doing. Both have their own roles and functions but Shiny is completely dismissing the role of cash. He straight up recommends everyone to buy MBH with all their cash.

Look at how he is insulting everyone with a war chest as "Being afraid of the market". Meanwhile you can see many people from the other threads here deploying their war chests now with huge smiles on their faces. Are all these people "proven wrong" like Shiny said? Just because of a couple of guys being bearish in 2013, he goes ahead and paint all market timers from 2017 as silly and wrong.

Also he refuses to investigate and address the weaknesses of the bond funds where many questions were raised by forumers here. Because guess what? Shiny holds neither of these funds, and does not care to go into details so he just pretends they are like US treasuries to simplify things to sell his book.

 

[zoneguard]

Both have their own roles and functions but Shiny is completely dismissing the role of cash. He straight up recommends everyone to buy MBH with all their cash.

Did you read Shiny's book: "Introduction - Before you Invest" and specifically the section on emergency fund? He mentioned high interest bank accounts. So it seems you didn't read his book..

Anyway what's the alternative to A35/MBH? Bond UTs? Bonds only available to Accredited Investors? SGS Bonds, SSB?

In Singapore's context, I find A35/MBH reasonable choices with regards to liquidity and bond yield for retail investors.

 

[Purplestars]

Did you read Shiny's book: "Introduction - Before you Invest" and specifically the section on emergency fund? He mentioned high interest bank accounts. So it seems you didn't read his book..

Anyway what's the alternative to A35/MBH? Bond UTs? Bonds only available to Accredited Investors? SGS Bonds, SSB?

In Singapore's context, I find A35/MBH reasonable choices with regards to liquidity and bond yield for retail investors.

Why are you talking about emergency funds? We are talking about keeping cash for investment during bad times, not about emergency funds for expenses that should not be touched.

The fact that you are mentioning this shows you aren't keeping up with the discussion, and have went all in to the bond funds with your "bond component". You'd have to sell out now if you want to rebalance. You have bought into Shiny's idea that cash is only for living expenses and have no use in a portfolio.

The alternative? High interest bank accounts, time deposits ect. These are things Shiny refuses to acknowledge in his book, so there is little wonder that Shiny fans like you have no idea about them. Immediate liquid cash is very valuable in times of crisis for investment, and I'm not talking about emergency funds unless you believe Buffett has an emergency fund worth billions.

 

[highsulphur]

I'm not comparing A35 vs MBH, this is an argument for you Shiny fans alone.

I'm saying thatboth A35 and MBH aren't the best instruments to use as a safe haven to store wealth.

How to define best store of wealth? If you mean doesn't vary in value then you are right, cash in bank accounts or SSB are the best.

I think SSB, cash in high yield deposit accounts and A35 all have their purposes. I have all three. In fact my cash is alot much than what I have in A35 but I still think there's value in having it.

 

[highsulphur]

Why are you talking about emergency funds? We are talking about keeping cash for investment during bad times, not about emergency funds for expenses that should not be touched.

The fact that you are mentioning this shows you aren't keeping up with the discussion, and have went all in to the bond funds with your "bond component". You'd have to sell out now if you want to rebalance.

The alternative? High interest bank accounts, time deposits ect. These are things Shiny refuses to acknowledge in his book, so there is little wonder that Shiny fans like you have no idea about them. Immediate liquid cash is very valuable in times of crisis for investment, and I'm not talking about emergency funds unless you believe Buffett has an emergency fund worth billions.

High yield accounts are not permanent. Banks have dropped their interest rates from the high of last year above 2% to around 1.7 now. And it takes effort trying to move funds around to meet their fresh funds requirements. It's not a given the yield of such accounts will always match bond funds like a35

 

[hwckhs]

Sometimes it pays to consult a reputable full fee financial planning arm for a second opinion.

What do you recommend? Is your portfolio a result of such consultation?

 

[zoneguard]

You have bought into Shiny's idea that cash is only for living expenses and have no use in a portfolio.

The alternative? High interest bank accounts, time deposits ect. These are things Shiny refuses to acknowledge in his book, so there is little wonder that Shiny fans like you have no idea about them. Immediate liquid cash is very valuable in times of crisis for investment

And you resort to name calling when I disagree with your points?

I already mentioned earlier on there is a place for cash AND bonds in my AA and certainly never asserted to "cash is only for living expenses and have no use in a portfolio.".

I see that you are not interested in a meaningful discussion on the role of bonds in AA. In that case, I will not continue with you as well. I'm out.

 

[hwckhs]

We are talking about keeping cash for investment during bad times, not about emergency funds for expenses that should not be touched.

So, you are talking about cash reserved for investment. What percentage of a portfolio should be in cash then? And, does it vary according to market conditions or it is static?

Common Boglehead portfolios do not have cash. What you describe sounds like a separate pile of cash, and involves active management. People interested in it will find more fun in SSI, rather than wasting time in this thread which focuses on passive investing.

 

[chrisloh65]

I have never heard that holding cash involves active management. What theoretical school of thought is that?
But as we know, theory will not help you in earning more money from investment. Or you mean people doing Passive investing is not interested in real returns?

So, you are talking about cash reserved for investment. What percentage of a portfolio should be in cash then? And, does it vary according to market conditions or it is static?

Common Boglehead portfolios do not have cash. What you describe sounds like a separate pile of cash, and involves active management. People interested in it will find more fun in SSI, rather than wasting time in this thread which focuses on passive investing.

 

[iceblendedchoc]

I take my cpf sa as part of my bond together with sg Govt bond.

 

[FrostWurm]

Really lol at all the people arguing so passionately in this thread when they can simply choose to disagree with his views and follow their own investment methodology

 

[hwckhs]

I have never heard that holding cash involves active management. What theoretical school of thought is that?
But as we know, theory will not help you in earning more money from investment. Or People doing Passive investing is not interested in real returns?

It involves active management, unless your cash remains as cash forever, and is never deployed to buy properties or stocks.

 

[iceblendedchoc]

This is the key point. You can have good arguments for holding bond funds, but you must not pretend they are equivalents to cash like Shiny is doing. Both have their own roles and functions but Shiny is completely dismissing the role of cash. He straight up recommends everyone to buy MBH with all their cash.

Look at how he is insulting everyone with a war chest as "Being afraid of the market". Meanwhile you can see many people from the other threads here deploying their war chests now with huge smiles on their faces. Are all these people "proven wrong" like Shiny said? Just because of a couple of guys being bearish in 2013, he goes ahead and paint all market timers from 2017 as silly and wrong.

Also he refuses to investigate and address the weaknesses of the bond funds where many questions were raised by forumers here. Because guess what? Shiny holds neither of these funds, and does not care to go into details so he just pretends they are like US treasuries to simplify things to sell his book.

To be fair to shiny, he is teaching people the basics and the invest and forget about it way which resonates with the majority. You talk about war chest etc, that involve timing the market and none of us have a crystal ball. I myself is holding a war chest with my monthly dca which I continue like a religion. But holding cash itself is also a drag because I dunno for sure when the market will bottom out, so I will do the next best thing which is to buy at a X point which I deem is my measure of market bottoming out with this war chest to bring down my average price of my holdings even lower .