STI ETF

[apriliasiao]

For me, my portfolio is based heavily on David Swensen's asset allocation. So ideally is to stay within whatever you have allocated even if it is buying lower performing assets to balance things out.

 

[Newbyib]

For me, my portfolio is based heavily on David Swensen's asset allocation. So ideally is to stay within whatever you have allocated even if it is buying lower performing assets to balance things out.

His asset allocation methodology is still correlation based using instruments non correlating with his growth asset which is US equities for the long run and he is using primarily bonds and reits. Hedging a little with developed markets ex US and emerging markets for some growth and hedging. Fixed ratio to dampen volatility yes. STI etf as an instrument is not ideal.

 

[narutos]

When will MAS do a QE?

 

[DevilPlate]

When will MAS do a QE?

We just did by digging into our reserves. Haha

Only USD as a global reserve currency that they are entitled to print unlimited trillions and other countries still willing to accept their toilet paper.

We all hold alot of USD when we invest out of SG market

 

[Kojo0403]

Agree with time in the market. But the market must be something decent. not rubbish STI. Look at the difference in 5 year returns between STI ETF & S&P 500 ETF.

rest my case

try plotting sreit against spy.. somehow they share good correlation over last few years (before covid sell off)

 

[frigatex]

Debate till cows come home also no use. For now, I've limited my sg exposure to reits only. Bookmark and come back a decade later and use "hindsight" to evaluate.

 

[Kojo0403]

i have allocated 50% of Singapore market portfolio to ES3 and the other 50% to CLR. Yea let’s see where it is in 10 years time.

 

[Newbyib]

When will MAS do a QE?

Nvr - because MAS’ monetary policy is by managing exchange rate. Monetary economics’ trinity theorem - can only target one instrument either interest rate or exchange rate if you don’t control currency movement.

 

[narutos]

We just did by digging into our reserves. Haha

Only USD as a global reserve currency that they are entitled to print unlimited trillions and other countries still willing to accept their toilet paper.

We all hold alot of USD when we invest out of SG market

A lot of non reserve currency countries also did QE, e.g. New Zealand. Look at their stock index, incredible run.

 

[narutos]

Nvr - because MAS’ monetary policy is by managing exchange rate. Monetary economics’ trinity theorem - can only target one instrument either interest rate or exchange rate if you don’t control currency movement.

the unkown is will MAS change their policy in the future?

 

[yumsang]

the rich will stay with STI
only the poor try their luck in other market

 

[highsulphur]

Nvr - because MAS’ monetary policy is by managing exchange rate. Monetary economics’ trinity theorem - can only target one instrument either interest rate or exchange rate if you don’t control currency movement.

You are right on the policy but there are ways to drive down the interest rate using exchange rate policy too through intervention without sterilisation.

 

[highsulphur]

the unkown is will MAS change their policy in the future?

Very very unlikely. It works extremely well for a small open economy like ours and has proven to be very effective against currency attacks.

 

[Newbyib]

You are right on the policy but there are ways to drive down the interest rate using exchange rate policy too through intervention without sterilisation.

Yes, monetary policy through interest rate targeting can have policy input parameters on exchange rate in addition to inflation rate, gdp growth and unemployment rate but the instrument is still short term interest rate which will induce the desired or collateral outcome on exchange rate. I have not worked on or analyse models on exchange rate targeting inducing effects on interest rate before. Anyway, the economists have nvr managed to uncover evidence that can link exchange rate movements to any formal models. Lol

 

[highsulphur]

Yes, monetary policy through interest rate targeting can have policy input parameters on exchange rate in addition to inflation rate, gdp growth and unemployment rate but the instrument is still short term interest rate which will induce the desired or collateral outcome on exchange rate. I have not worked on or analyse models on exchange rate targeting inducing effects on interest rate before. Anyway, the economists have nvr managed to uncover evidence that can link exchange rate movements to any formal models. Lol

It will not be explicitly targeting interest rate but if MAS intervenes to buy USD/SGD without removing the excess SGD it injected from the FX purchase, it will definitely pressure down the interest rate.

 

[Newbyib]

It will not be explicitly targeting interest rate but if MAS intervenes to buy USD/SGD without removing the excess SGD it injected from the FX purchase, it will definitely pressure down the interest rate.

Ok, you are right on the collateral effect - reminds me somewhat of the exchange rate interest rate parity thingy but reversing the order. Too bad not a currency trader.

 

[IndianChief]

U r showing exactly that. US markets chiong after massive QE and interest rates cut.
By cutting out home market and adding on more US equities are just taking on more risks at the moment.
In fact i limits my buying in US and has been adding others markets heavily into my portfolio.
Nobody like low returns if possible but selling lower return markets and chasing those on steroid sound silly in portfolio management unless u r a short term trader.

Sent from Apollo 13 using GAGT

i dun care why or what cause it to run. i only know it is running and will continue to run. thats all that matters.

 

[5408854088]

the unkown is will MAS change their policy in the future?

can look up S$NEER to understand the monetary policy

 

[aiptasia]

Selling the losers and buying more winners is the way most people invest.

It is not a widely practiced investment strategy to sell the winners and buy more of the losers.

From what I see in this sub-forum and a few other Singapore investment blogs and sites, it seems to be widely practised and even encouraged!

As Peter Lynch the legendary fund manager said - Selling your winners and holding your losers is like cutting the flowers and watering the weeds.

 

[DevilPlate]

From what I see in this sub-forum and a few other Singapore investment blogs and sites, it seems to be widely practised and even encouraged!

As Peter Lynch the legendary fund manager said - Selling your winners and holding your losers is like cutting the flowers and watering the weeds.

Invest in what you know seems outdated too in this new world.

Zero sum game after all, you make money while many others losing money at the same time.