Official Shiny Things thread—Part III

[ftpofmpo]

is it a bully rally or dead cat bounce? s and p 500 has already recovered to above 2700

 

[highsulphur]

What's the best safe haven now? While waiting to dca for the rest of the year?

 

[kurtgoh]

Hello Shiny,

may i seek your opinions/views again.

I'm running out of ideas on where to invest.

Currently I'm doing ESP $1k on STI ETF, along with company shares.
Been doing that for a long period of time.

just started RSP on counter SGX: CFA $1k monthly.

i'm thinking of enrolling NYSE: FTEC & VT.
but thinking if feasible as it subject to 30% of withholding tax.
the good catch is the RSP fee is only USD $1 + GST

recently, i just acquire some IWDA, not much, just a little from my little warchest.

i like ETF as they are well spread and suit me well.

if you may, do share your views.

It seems I'm heavily on Singapore market..
A frog in the well situation.

Cheers.

 

[rotatingfan]

Hi all. Based on ShiningThings book, can I ask if I can replace ES3 with a S&P ETF instead for my allocation but still leaving IWDA and A35 as they are? This is just because I prefer US to SG stocks.

 

[limster]

Hi all. Based on ShiningThings book, can I ask if I can replace ES3 with a S&P ETF instead for my allocation but still leaving IWDA and A35 as they are? This is just because I prefer US to SG stocks.

Why do you need Shiny to validate your decision not to follow his recommendation? Maybe Shiny needs a new chapter in his book "I don't want to follow your recommendation, can you support my decision?"

 

[cassowary18]

Hi all. Based on ShiningThings book, can I ask if I can replace ES3 with a S&P ETF instead for my allocation but still leaving IWDA and A35 as they are? This is just because I prefer US to SG stocks.

Is there a particular reason why you prefer US stocks? Are you, for example, thinking of retiring in Hawaii? (I'd love to do that!)

If not, having local exposure is important so that you're not exposed to too much currency risk.

 

[rotatingfan]

Why do you need Shiny to validate your decision not to follow his recommendation? Maybe Shiny needs a new chapter in his book "I don't want to follow your recommendation, can you support my decision?"

I'm new in this, so just have a question. If that's the way you interpret it, then so be it. I will appreciate more useful comments than thread policing work or sarcasm. Real men don't do that.

 

[rotatingfan]

Is there a particular reason why you prefer US stocks? Are you, for example, thinking of retiring in Hawaii? (I'd love to do that!)

If not, having local exposure is important so that you're not exposed to too much currency risk.

Thanks for the views. Currency risk is something that I had not considered that much but will do so now.

The reason of why S&P is simply because it has more upside than STI in my view. I'm no expert at all but STI never recovered to its peak while S&P had far exceeded it.

 

[cassowary18]

Thanks for the views. Currency risk is something that I had not considered that much but will do so now.

The reason of why S&P is simply because it has more upside than STI in my view. I'm no expert at all but STI never recovered to its peak while S&P had far exceeded it.

I totally agree! Then an alternative would just be to increase the proportion of IWDA in your portfolio and decrease the proportion of ES3. That's what I do personally.

Remember that the S&P 500 is already a significant proportion of IWDA already.

 

[cassowary18]

Hi all. Based on ShiningThings book, can I ask if I can replace ES3 with a S&P ETF instead for my allocation but still leaving IWDA and A35 as they are? This is just because I prefer US to SG stocks.

Also, I just realized that your bond fund is A35. Nothing wrong with that, but you should consider MBH too. Maybe you read an older edition of the book that still suggested A35, but the latest edition recommends MBH.

 

[limster]

This is just because I prefer US to SG stocks.

one assumes that when you say you prefer US to SG stocks, your preference is based on a belief that US will outperform SG stocks on a risk-adjusted basis.

if you believe US stocks will outperform SG stocks go right ahead, no need to ask permission

 

[BBCWatcher]

Remember that the S&P 500 is already a significant proportion of IWDA already.

Yes, roughly 60% at present. Here's how I estimated that number.

At this instant, as I write this, U.S. listed/traded stocks represent 65.11% of IWDA's value (per the iShares Web site). I don't have the latest S&P 500 figures, but the S&P 500 is probably about 80% of total U.S. stock market capitalization right now. IWDA says it aims to include the top 85% of the stock markets it invests in. So take .80 divided by .85 multiplied by 65% and you get "roughly 60%."

About 12% of IWDA consists of just 5 U.S. listed/traded stocks: Microsoft, Apple, Amazon, Facebook, and Alphabet (combining both of Alphabet's share classes). Which is pretty amazing, really.

 

[moolala]

Why are ppl investing in STI? Singapore is not going to grow much lol

 

[spvnnn]

Hi Shiny Things I posted this a couple of weeks ago in this thread but not sure if you saw it since you never responded to it. Hope to get some advice, thanks.

_____________________

Thanks Joshua for your book, enjoyed reading through it. One big question I have is nowhere in the book do you ever talk about investing in individual stocks (in fact it sounds like you're somewhat discouraging it). Aren't there cases where it'd be prudent to invest into individual stocks, either for growth or dividends? If so, do you have any guidelines that you'd follow (e.g. how much you invest, when do you do it, etc.) Or would you genuinely recommend always sticking to ETFs 100% of the time?

Thanks for the book once again.

 

[Thoreldan]

Hi all. Based on ShiningThings book, can I ask if I can replace ES3 with a S&P ETF instead for my allocation but still leaving IWDA and A35 as they are? This is just because I prefer US to SG stocks.

I was like you. Had plans to ditch sti etf for sp500 tech (iuit). In the end i just up my monthly allocation to iwda instead of leaning towards a particularly sector.

Sti etf is shiatz. Whahha.

I already have quite a bit of my sgd in cpf and real estate, so going all out to iwda.

 

[duckyboi]

Why are ppl investing in STI? Singapore is not going to grow much lol

Because you need some allocation to sgd if you are going to retire here.

If you retire with all your money in a foreign currency, that's not exactly a great thing as it is exposing you to alot of forex risk.

 

[duckyboi]

Hi all. Based on ShiningThings book, can I ask if I can replace ES3 with a S&P ETF instead for my allocation but still leaving IWDA and A35 as they are? This is just because I prefer US to SG stocks.

Why buy s&p when you already have IWDA? Those two have a big overlap.

 

[Johnpierpontmorgan]

The fed is buying junk bonds to prevent the collapse of fallen angels

I suppose buying a35 or mbh is way too conservative now, junk offers 5-8% yield and the fed is the buyer of last resort, full face value

More money printing. It’s close to usd 6 trillion on the Fed balance sheet Was expecting it will reach 8 trillion over six months, but the pace of money printing exceeded way ahead my forecast

The traditional 6:4 investment style will obliterate your wealth. Been warning for years here.

 

[5408854088]

any idea where can find the breakdown of buying and selling volume? instead of the usual consolidated trading volume.

 

[RuiQi_91]

Hi all,

I have a few silly questions,

1) Does yield in percentage https://sg.finance.yahoo.com/quote/G3B.SI?p=G3B.SI&.tsrc=fin-srch indicate the dividends I receive every year as a percent of the money I have in it? e.g. a 1k investment in G3B with a yield of 3.92% will return me $30.92 a year?

2) It is mentioned here by Shiny https://forums.hardwarezone.com.sg/123956612-post7897.html that the STI ETF is good because we are "diligently reinvesting the dividends" of 4%. What would this mean for the POSB IS since does not reinvest the dividends for us?

3) Why would it not be better to simply put the money in a bank account where the interest rate is sufficiently high at like 2%? I read posts of people losing a decade's worth of profits through ETFs during a crisis like the covid right now.