Official Shiny Things thread—Part III

[Jirachi]

Quick question -- are Singapore residents now allowed to buy Singapore stocks on IBKR?

I wanted to know too because I do see SGX shares in IBKR.

 

[Jirachi]

As long as once a month is fine

DCA is fine and I agree that most DCA strategy is good especially for new players.

At such crisis, I say, seize some opportunity to really buy lower.

As a trader, timing the market does work.

I do DCA most of the time, but timing the market more for the past few months.

 

[Jirachi]

Those who unload warchest to iwda at $50, what do you have to say now? Lol .

Perfect example low can always go lower

You don't know where is exactly the bottom anyway.

 

[Jirachi]

Trading Hours in the United States / Americas
The New York Stock Exchange (NYSE) is based in New York City. The NYSE is one of the largest stock exchanges in the world, and it is a public entity.1 As of 2019, the NYSE has normal trading hours from 9:30 a.m. to 4 p.m. local time, unless there's an early close due to a holiday.

The Nasdaq is an American stock exchange that serves as a global electronic marketplace for securities trading. Pre-market trading hours are from 4 a.m. to 9:30 a.m. local time, and after-hours trading extends from 4 p.m. to 8 p.m. The normal trading hours begin at 9:30 a.m. and end at 4 p.m.

When i look at TWS charts for some Nasdaq stocks, data for pre-market & after-hours trading are not shown.

Do you guys buy US stocks during the normal trading hours Only?

Pre-market and after-hours are usually for traders in the CFD market.

 

[utorz-]

Hi,

Wanted to get some advice.

Is IB still on of the recommended platform for the ETF?

Can we also buy singapore stocks on IB or other platform is better?

 

[Jirachi]

If you're doing DCA every month, IB is going to be more worth it. If you're alternating between buying ES3 and IWDA monthly, then your SCB costs will be halved and it might be cheaper to go with SCB. (6xUS$10 vs 12xUS$10)

SCB charges US$10 +7%gst +~0.5-0.8% fx spread per trade
IB charges US$10 flat monthly whether or not you trade that month

Small correction on the US$10 monthly. Your commissions do count towards that monthly fee.

 

[Jirachi]

Possibly a bull trap during the last 3 trading days.
Retesting lows again soon?


Seems like it.

Volatility. No one actually has a definite answer. Just have to watch for VIX and SP500 to find a pattern.

So far it's alternating between trading and outside of trading hours.

 

[cassowary18]

No time frame as I am not invesment savvy, just leave it there let it gain interest.

for SSB invesment what portal should I use to engage?

You might want to reconsider this because SSB interest rate will not necessarily be higher than inflation in the long run. A balanced portfolio of equities and bonds might be better in the long run.

For SSB, what you need to do is to open a CDP account first. More details here: https://investors.sgx.com/cdp-account-opening/ (you can open through MyInfo now!)

Then, through your bank's internet banking or ATM, apply for this month's SSB issue.

More details can be found here: https://www.mas.gov.sg/bonds-and-bills/investing-in-singapore-savings-bonds/how-to-buy

 

[pylpoh]

Cannot buy. I remembered trying months ago.

I wanted to know too because I do see SGX shares in IBKR.

 

[cassowary18]

Cannot buy. I remembered trying months ago.

Tiagong IB is going to be launched in S'pore, and they will allow SGX trades from then on. For more info, check out this thread: https://forums.hardwarezone.com.sg/...perations-singapore-jan-2020-a-6141243-5.html

 

[Jinhech]

Hi all,

Any thoughts around changing asset allocation to improve returns through bull and bear markets?

For example, if I'm 40 years old, my recommended asset allocation between stocks and bonds is 70% and 30%. And I have 25 years until retirement. In this current climate, because the stock market has crashed (which will also ultimately rebound in 25 years time), should I shift my allocation to 90% stocks and 10% bonds?

Assuming 5 years later the market recovers, I will shift my allocation back to 70-30 stock-bond allocation. Makes sense? Comments?

Thanks!

 

[Okenba]

Hi all,

Any thoughts around changing asset allocation to improve returns through bull and bear markets?

For example, if I'm 40 years old, my recommended asset allocation between stocks and bonds is 70% and 30%. And I have 25 years until retirement. In this current climate, because the stock market has crashed (which will also ultimately rebound in 25 years time), should I shift my allocation to 90% stocks and 10% bonds?

Assuming 5 years later the market recovers, I will shift my allocation back to 70-30 stock-bond allocation. Makes sense? Comments?

Thanks!

The main issue I see with this is whether or not you think you can take more losses. The bear may not be over yet, and if you overbalance now, you might see more drops in equity prices.

 

[chrisloh65]

Yes, I have used similar strategy over many years and proven rewarding!

However, I believe that current US stock market has not "crashed"! It is still terribly over-valued!

Another thing I realize in this current period is that bond can also drop in price even when global interest rates goes down, which is contrary to general theory, so bond is no safe haven, and cash is real king now (not bond)!

Hi all,

Any thoughts around changing asset allocation to improve returns through bull and bear markets?

For example, if I'm 40 years old, my recommended asset allocation between stocks and bonds is 70% and 30%. And I have 25 years until retirement. In this current climate, because the stock market has crashed (which will also ultimately rebound in 25 years time), should I shift my allocation to 90% stocks and 10% bonds?

Assuming 5 years later the market recovers, I will shift my allocation back to 70-30 stock-bond allocation. Makes sense? Comments?

Thanks!

 

[krak3n]

I wanted to know too because I do see SGX shares in IBKR.

can see sgx, but cannot trade them if u r a local resident.

 

[flowerpalms]

If you are 40 years old, keep your allocation at 70/30. Follow the 110-age rule. Dont change it because of what you see in the market now.

5 years later, no matter what happen your allocation will also change so it is not 70/30. Why?
40 + 5 = 45
110 - 45 = 65
So it will then be 65% stocks, 35% bond

Hi all,

Any thoughts around changing asset allocation to improve returns through bull and bear markets?

For example, if I'm 40 years old, my recommended asset allocation between stocks and bonds is 70% and 30%. And I have 25 years until retirement. In this current climate, because the stock market has crashed (which will also ultimately rebound in 25 years time), should I shift my allocation to 90% stocks and 10% bonds?

Assuming 5 years later the market recovers, I will shift my allocation back to 70-30 stock-bond allocation. Makes sense? Comments?

Thanks!

 

[sekiraku]

Hi, I've just started to invest this past week and will be following the 3-fund portfolio.

I will be investing SGD60k lump sum: 20% in A35 ABF bonds, 30% in ES3 STI and 88/12 split in VHVE and VFEA Vanguard ETFs on LSE.

Brokers I'm using are DBS Vickers cash upfront and IB.

Given the current volatile market (Covid-19), how should I DCA or would a lump sum buy be better?

 

[hwckhs]

I will be investing SGD60k lump sum: 20% in A35 ABF bonds, 30% in ES3 STI and 88/12 split in VHVE and VFEA Vanguard ETFs on LSE.

The 88/12 split between VHVE and VFEA within global equities (50%) means VHVE 44%, VFEA 6%.

You may just go with VWRA instead of 2 separate ETFs. Your 88/12 ratio is not very different from what you would get from VWRA. Save the trouble, and save the difficulty in buying in small quantities (6%).

 

[sekiraku]

The 88/12 split between VHVE and VFEA within global equities (50%) means VHVE 44%, VFEA 6%.

You may just go with VWRA instead of 2 separate ETFs. Your 88/12 ratio is not very different from what you would get from VWRA. Save the trouble, and save the difficulty in buying in small quantities (6%).

I decided on VHVE/VFEA rather than VWRA due to the expense ratio, (0.12/0.22 aggregating at 0.132) vs a flat 0.22.

That said, IB offers rather low commission fees with a min fee of USD10 every month inclusive of commissions. So I don't mind trading on 2 ETFs.

 

[diediex]

Hi all,

Any thoughts around changing asset allocation to improve returns through bull and bear markets?

For example, if I'm 40 years old, my recommended asset allocation between stocks and bonds is 70% and 30%. And I have 25 years until retirement. In this current climate, because the stock market has crashed (which will also ultimately rebound in 25 years time), should I shift my allocation to 90% stocks and 10% bonds?

Assuming 5 years later the market recovers, I will shift my allocation back to 70-30 stock-bond allocation. Makes sense? Comments?

Thanks!

I have heard from people saying that having bonds serve as a parachute in time of crisis. Your overall portfolio profit/loss % will not swing down as much compared to others with 0% bond.

I fully agree. But in my opinion, Bonds can serve as both parachute and rockets or war chest in time of crisis. Convert your bond holdings into stocks when you feel the price is low enough to take the plunge. When market recover you will gain much more than if you were to do nothing.

That said, you have to be able to take the psychology impact of price falling even lower for the months/years to come; No one can tell you where/when the bottom will be. Else you may have sleepless nights for many months to come

 

[BBCWatcher]

I decided on VHVE/VFEA rather than VWRA due to the expense ratio, (0.12/0.22 aggregating at 0.132) vs a flat 0.22.

VWRA will automatically rebalance across the stocks listed in "emerging" and "developed" economy markets based on market capitalization, and that'll tend to improve the long-term yield. I think that's worth the ~8.2 basis points per year.