Official Shiny Things thread—Part III

[d9_lives]

Is it worth to sell high yield SSBs for rebalancing? For example those with ~2.5% yield over 10 years

I wanted to sell too until my wife slapped some sense into me.
Treat it as Emergency Fund ba.

 

[NeneNene]

I wanted to sell too until my wife slapped some sense into me.
Treat it as Emergency Fund ba.

ha..ha..ha..very tempting proposition for many of us...

 

[revhappy]

Is it worth to sell high yield SSBs for rebalancing? For example those with ~2.5% yield over 10 years

Don't sell just because markets are cheap. Cheap can become cheaper. Buy if it was your plan all along.

 

[FrostWurm]

What do you guys think about it? Anything you have learnt from this crash?

Ever so rarely, when you can see an oncoming train, have the patience to stand by the side and wait for the train to pass. Even if you do not know how long the train will take to pass, wait for the coast to be clear before you carry on walking.

You might have lost some time, but at least you are safe.

 

[Purplestars]

PPCIan talks about building a war chest and non-linear DCA in his latest video.

From a 20+ years DCA investor, I guess that’s a pretty honest reflection.

What do you guys think about it? Anything you have learnt from this crash?

We could be seeing the end of pure DCA as we know it. People will start timing the market now and build reserves to buy when market crashes. The mental scars from this crisis will be lasting.

It’s quite common sense really, how do you keep buying at usual rates when your income is affected?

Too bad it came a bit too late for people reading this thread.

 

[d9_lives]

We could be seeing the end of pure DCA as we know it. People will start timing the market now and build reserves to buy when market crashes. The mental scars from this crisis will be lasting.

It’s quite common sense really, how do you keep buying at usual rates when your income is affected?

Too bad it came a bit too late for people reading this thread.

What if 'that guy' in China didn't crave for bat meat? What will you sing today?

I don't believe in keeping warchest.
EF secured, all my money put to work.

 

[limster]

it just shows the importance of having an asset allocation consistent with your risk profile.

If investors are panicking, its probably because their allocation to equities is too high compared to what their risk profile is.

If investors had a sufficient allocation to bonds/SSB/short term fixed Deposits/gold consistent with their risk profile, they wouldn't panic; instead they can turn to their bonds/SSB/FDs as 'warchest'.

 

[culepico]

What if 'that guy' in China didn't crave for bat meat? What will you sing today?

I don't believe in keeping warchest.
EF secured, all my money put to work.

There are no what ifs. It happened and the market is tanking, and will probably continue to tank. If you are happy with your DCA, go ahead. It will still pay off in the long term. But wise people will be a little more flexible with their timing in order to get more returns.

Whatever the case, investing is to each his own, you invest whenever and whatever you are comfortable and happy with.

 

[revhappy]

it just shows the importance of having an asset allocation consistent with your risk profile.

If investors are panicking, its probably because their allocation to equities is too high compared to what their risk profile is.

If investors had a sufficient allocation to bonds/SSB/short term fixed Deposits/gold consistent with their risk profile, they wouldn't panic; instead they can turn to their bonds/SSB/FDs as 'warchest'.

People should seek professional help. Risk tolerance can be improved by therapy. Either by meeting professionals or reading books. Asset allocation alone is not enough. Some people panic even with low allocation.

Also half knowledge is more dangerous than zero knowledge. People who follow DCA with zero knowledge of equities do best. Whereas people who know about stocks and do all sorts of trading at whim are more dangerous to themselves.

 

[Geeezz]

it is time like this that reveals people real level of risk tolerance. there are many people who overestimated their own risk tolerance level.

imo dca is still relevant because one fact for sure is that we will never be able to know when the market will crash. we could be holding onto a large pie of cash waiting for a crash that might never come till we reach our old age. There’s this possibility.

War chest would be a luxury some can have, but as starters it’s better to be vested via dca then to hold and wait. There’s a saying that time in the market beats timing the market

 

[flowerpalms]

Yes you got it right. Thank you for this

it is time like this that reveals people real level of risk tolerance. there are many people who overestimated their own risk tolerance level.

imo dca is still relevant because one fact for sure is that we will never be able to know when the market will crash. we could be holding onto a large pie of cash waiting for a crash that might never come till we reach our old age. There’s this possibility.

War chest would be a luxury some can have, but as starters it’s better to be vested via dca then to hold and wait. There’s a saying that time in the market beats timing the market

 

[chrisloh65]

Looks like STI encourage you to trade the stock only? Not allowing to place limit orders outside of 4 ticks of last price to me is pretty stupid.

Has no one found the acceptable price range to input orders fro sgx counters ridiculously narrow? It's almost impossible to place any limit orders when you are allowed to place orders only within 4 ticks of last price.

 

[hahaman111]

Anyone ever encounter pending risk check for standard chartered trades? So strange that it is stuck for so long.

 

[d9_lives]

I have been sounding the warning for a while about blind DCA and that a stock market crash is coming and strangely I got infraction points from moderator for raising and talking about these here!

Yeah, so did 'they' in 2010, 2011, 2012... in fact every year until today.
What do we say about a broken clock?

 

[highsulphur]

I have been sounding the warning for a while about blind DCA and that a stock market crash is coming and strangely I got infraction points from moderator for raising and talking about these here!

Dude give it a rest. You have your strategy the rest of us are happy with ours. Why do you keep going on how good yours is. If you are so adamant to share, start a ChrisLoh thread and share your insights there. It's not what you say but rather how and where you say it.

 

[d9_lives]

Also half knowledge is more dangerous than zero knowledge. People who follow DCA with zero knowledge of equities do best. Whereas people who know about stocks and do all sorts of trading at whim are more dangerous to themselves.

What about those who don't know that they don't know?

Does paper loss/gain today, matter to DCA folks?

 

[highsulphur]

What about those who don't know that they don't know?

Does paper loss/gain today, matter to DCA folks?

It depends. If you are highly leveraged with a job of poor security and a large mortgage overhanging you, you might feel stress over short term losses as they pile up. But if one has
1) a healthy cpf balance to fall back as retirement plan
2) never overleverage on car or house loan or better still no loan
3) have sufficient emergency reserve to tide through job losses

Then it's easier for them to ride through the storm psychologically

In short, what you do to your general financial health before the crisis will affect your ability to capitalize the opportunity that presents itself in a crisis. Many forget the part that job security is usually inversely correlated with financial crisis. Sure the stocks or properties are cheap but can you sustain your job to buy more stocks or property

 

[revhappy]

What about those who don't know that they don't know?

Does paper loss/gain today, matter to DCA folks?

DCA people who are following professional advice will do fine, since they trust the advice. It is like going to a doctor and taking medicine, you trust the doctor and you don't try to find out what is inside the medicine.

To be clear, professional financial advisors, I understand, will prescribe, to people how much to DCA depending upon their goals and time horizons. So they should be fine. I have no doubt about it. Panicking, is when people don't trust what they are doing is right, so the right thing to do is to seek professional advice or if you DIY, then learn.

 

[isaacsayshi]

Anyone knows why IWDA didn't fall as much when the SP500 falls more than 11%>

IWDA currently holds sixty percent of it's portfolio in US markets but only drop a percent or two only...

 

[revhappy]

Anyone knows why IWDA didn't fall as much when the SP500 falls more than 11%>

IWDA currently holds sixty percent of it's portfolio in US markets but only drop a percent or two only...

When IWDA closed yesterday night, US was down lower circuit, so IWDA had already priced it.