Author: Financial Horse

Why Bitcoin has a place in my diversified portfolio

Source: CNET I know what many readers are probably thinking. Financial Horse has finally gone off the rafters. Bitcoin in his diversified portfolio alongside stocks, REITs, and bonds? What is this guy smoking? Trust me, when I first heard about cryptocurrency, I thought it was absolutely ridiculous as well. A virtual currency administered via distributed ledger and not backed by any income stream, government or commodity? Why would anyone want that? A lot of really important people, including Warren Buffet, JP Morgan’s Jamie Dimon (although he did regret making this statement later) and Bill Gates have all come out to state their...

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Stock Brokers I use to replace Standard Chartered Online Trading (S$500 referral bonus)

Source: Forexbrokers Like many of you investors out there, I was a huge fan of Standard Chartered Online Trading when it first opened. No minimum commission on stock trades, on any stock exchange in the world? Sign me up please! In my early days as an investor, I placed almost all my US and Singapore stock trades on Standard Chartered. The no commission allowed me to purchase S$1000 to S$500 worth of stock each time, and pay S$1 or S$2 in fees. Those were the golden days of stock trading. Eventually Standard Chartered probably figured out that this wasn’t...

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StashAway: Responses from the CEO and my thoughts

Source: StashAway My previous article on 3 Reasons Why I will not invest my life savings with StashAway must have ruffled some feathers, because shortly after, the StashAway team reached out to me for a meeting. I met up with the CEO, CIO and IR girl a couple weeks back for a really interesting lunch. Following the meeting, StashAway sent me an email that very nicely sums up the crux of our discussions. I have replicated it in its entirety below, no tricks here. I will then set out my personal thoughts, and readers can have a fuller picture...

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How I plan to invest my En-Bloc Proceeds

Source: Edgeprop I received this question recently on the Financial Horse Forums: Hi Financialhorse. My investment property is going enbloc. I do not intend to buy back another property because of the ABSD. Can you advise me how to do a safe investment to generate income? I am in my 60’s and my risk appetite is not high. Thanks. This really caught my eye because after my previous 10 Stocks to buy in the next market crash article, a reader also reached out saying that he planned to invest his en-bloc proceeds based off the suggestions in that article....

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10 Stocks to buy in the next market crash

Source: Seven Pillars Institute I recently chanced across an article by Turtle Investor where he described what he would do with his robo investments if the market crashed (Spoilers Alert: He would sell bonds and buy equities). It got me thinking, we have emergency plans for fires, earthquakes, aeroplane emergency landing, why not one for our investments? Where is the colourful brochure that tells investors what to do in the event of a 20% or 50% crash in share prices? The persistent flattening of the yield curve is starting to look quite worrying. An inversion of the 2s10s US...

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Part II: Can we do better than Robo-advisers?

Source: AutoWealth Financial Horse himself would not use a robo-adviser in its current form. But Financial Horse is an investing enthusiast who spends every waking hour reading up on investment strategies and annual reports. I recognise that not everyone is this obsessive. In this article, I will propose a simple DIY alternative that doesn’t require too extensive financial knowledge, or effort from the part of the investor. Let’s imagine a hypothetical investor John. John is 25 years old. He has just graduated from NUS (with an engineering degree!), and earns a nice S$4,000 a month that he is very...

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Part I: Why I like Autowealth more than StashAway, and proposing an Alternative to Robos

Source: AutoWealth My previous article on StashAway produced a lot of great feedback and debate from readers. Big shoutout to all readers of Financial Horse, great to know that readers are sophisticated investors who would never take a simple 6.9% projected CAGR at face value. There was a fair bit of feedback to do a follow up piece on Autowealth, given that they have a slightly different asset allocation strategy and lower fees. It’s been something that I really wanted to do as well, since I felt the previous piece was incomplete, and failed to address a few key...

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MGCCT’s acquisition of a Japan Portfolio: Why this Unitholder is pleased

Source: Mapletree Circular Mapletree Greater China Commercial Trust (MGCCT) recently announced that it would be acquiring a portfolio of six freehold commercial real estate assets located in Tokyo, Chiba and Yokohama, Japan. Following the completion of the acquisition, MGCCT will be renamed to “Mapletree North Asia Commercial Trust”. I think a lot of pundits in the market have been calling this since MGCCT expanded their investment mandate to include Japan back in January, so this move didn’t come as a surprise to anyone. Having seen the finer details though, Financial Horse, a unitholder himself, is quite pleased with this...

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Alibaba: Is Asia’s E-Commerce juggernaut worth a buy?

As at 13 April 2018, Alibaba Group Holding Limited (NYSE: BABA) closed at USD 172.04, which is 42 times trailing twelve month (TTM) P/E and approximately 26 times forward P/E. It’s had an amazing run-up from USD 110 12 months ago, but as the 12 month chart below shows, the price has been stagnating since about September last year. Comparatively, Amazon has gained about 42% in the same time period. I’ve long been a fan of Jack Ma’s Alibaba, and I absolutely love the long term growth prospects of China and South East Asia. I decided to take a...

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Part II: 3 big reasons why I won’t put my life savings in StashAway: What you need to know about Robo-Advisers

Source: StashAway In Part I of this Article, I described what I disliked about StashAway. In Part II, I will mention what I liked about this roboadviser. 1. Insolvency Risk What happens when StashAway goes bust? On their FAQ, they state that: Technically, the ETFs are owned by Saxo, our broker. Asia Wealth Platform Pte Ltd (our legal entity) is a beneficiary of Saxo. Similarly, you are a beneficiary on our ledger. So in short, you are the owner of the ETFs in your portfolio(s). I emailed them to find out more, and you can take a look at...

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Part II: 3 big reasons why I won’t put my life savings in StashAway: What you need to know about Robo-Advisers

Source: StashAway In Part I of this Article, I described what I disliked about StashAway. In Part II, I will mention what I liked about this roboadviser. 1. Insolvency Risk What happens when StashAway goes bust? On their FAQ, they state that: Technically, the ETFs are owned by Saxo, our broker. Asia Wealth Platform Pte Ltd (our legal entity) is a beneficiary of Saxo. Similarly, you are a beneficiary on our ledger. So in short, you are the owner of the ETFs in your portfolio(s). I emailed them to find out more, and you can take a look at...

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Part I: 3 Big Reasons why I won’t invest in StashAway: What you need to know about Robo-Advisers

Source: Taken at Raffles Place MRT Introduction I saw a question on the Seedly Facebook Group recently that really got me thinking: “Hi everyone, I would like to find out which mode of investment stands a higher chance to make money? Robo advisor or conventional methods like financial advisor? I’m looking at 10% annually.” Now this statement is wrong on so many levels. Firstly, the historical, multi-decade return for equities is about 7%. 10% is simply unachievable without taking outsized risks that opens you up to complete loss of your initial capital. Secondly, a person who can achieve a...

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3 Big Reasons why I won’t invest in StashAway: What you need to know about Robo-Advisers

Source: Taken at Raffles Place MRT Introduction I saw a question on the Seedly Facebook Group recently that really got me thinking: “Hi everyone, I would like to find out which mode of investment stands a higher chance to make money? Robo advisor or conventional methods like financial advisor? I’m looking at 10% annually.” Now this statement is wrong is wrong on so many levels. Firstly, the historical, multi-decade return for equities is about 7%. 10% is simply unachievable without taking outsized risks that opens you up to complete loss of your initial capita. Secondly, a person who can...

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Reflections on the GRE

Photo Credits: ETS I took the GRE recently because I have been thinking of doing a postgraduate degree. I’ve completed the entire experience, and wanted to document my entire study process and what I could have done better. Hopefully this may be of use for those of you out there who are preparing for the GRE as well. Basics: GRE The Graduate Record Examinations (GRE) is a standardised test that is an admissions requirement for most postgraduate degrees around the world. The GRE is owned and administered by Educational Testing Service. The broad format of the test is set out...

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Reflections on the GRE

Photo Credits: ETS I took the GRE recently because I have been thinking of doing a postgraduate degree. I’ve completed the entire experience, and wanted to document my entire study process and what I could have done better. Hopefully this may be of use for those of you out there who are preparing for the GRE as well. Basics: GRE The Graduate Record Examinations (GRE) is a standardised test that is an admissions requirement for most postgraduate degrees around the world. The GRE is owned and administered by Educational Testing Service. The broad format of the test is set out...

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