Author: Rainbow Coin

Quick update – Nov

Using US portfolio to hedge against SG portfolio was a mistake. Because they are not perfectly correlated, both in their direction and magnitude. Over the last couple of months, US stocks have been on the run up like crazy and I have lost about USD500+ on VXX which bet against the rise of index. It was opened with the intention of hedging against a general market downturn (which...

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Watchlist: Mapletree NAC Trust

As expected, the price declined after ex-div NPI up but headwind still strong, given that Festival Walk (HK) contributed 62% of revenue. https://sbr.com.sg/commercial-property/news/mapletree-north-asia-commercial-trusts-npi-13-in-q2 Still no sign of peace from the HK protest and there’s a recent incident at Festival Walk "Footfall for 1H20 fell 3.6% and tenant sales dipped 6.6% in...

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Retirement planning

In simple terms, one can retire when one’s annual passive income is more than one’s annual expenses. A common rule of thumb for the sum needed to retire is the rule of 25 – based on the assumption of a 4% yield, your net worth should be 25 x annual expenses before you can FIRE. So let’s say you are a lean spender who spend $1000 a month, theoretically you would need 25 x 12000 = $300,000 This theory has many assumptions. It assumes: 1) Spending remains the same and predictable Which means zero inflation and minimal lifestyle changes....

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SG Active Trading Tournament 2019

Total 1832 participants. My current rank is 79. The underlying derivatives for trading are DLC which stands for Daily Leverage Certificates. You can read more about it here. “The issue price of a DLC is arbitrary, i.e. it is decided by the issuer, which is similar to the mechanism of a stock or an ETF. For DLC, issuers determine the issue price that strikes a balance between tighter spread and higher sensitivity. Because DLC issue price is arbitrary, for two DLCs of the same underlying asset, direction and leverage but of different prices, the lower-priced DLC should not be considered...

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Self-care

People hate unsolicited advice – whether it is about telling them to quit smoking, stop using something that is already causing them health problem or to go see a doctor. So instead of telling the patient what to do, it is often more effective to ask if he plans to do something about a condition that is bothering him or lay out the choices and let the patient choose. From there, the pharmacist can guide the patient on what he could use or do. It is challenging for a pharmacist, in that sense, when a patient staunchly believe that...

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You would start reducing waste if the world collapsed

This post is inspired when I caught news about a girl called Greta Thunberg from a couple of weeks ago.She is a Swedish teenage climate activist and the founder of FridaysForFuture. Watch the TED video of her valiant speech below.[embedded content] Nothing out of ordinary for this climate change topic, I am just both amused and impressed that a young girl can feel so strongly for the cause. There are a number of debates out there on whether climate changes are a result of mankind’s doings or just the course of nature. However, we already know for a fact that human depletion of...

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怎样让自己成为上进的人

[embedded content] In a nutshell: Get “forced” Design a purposeful environment Get yourself “addicted” Get yourself “kidnapped” Break a big goal into smaller steps that lead to it Choose an occupation that has no limit to its levels of achievement and which you can get regular “performance feedback” Self motivation can be designed and deliberately planned. It is the first step to accomplishments that were previously thought to be impossible. If you have not thought about how to invest your money or take charge of your own finances or plan for retirement, think about what you could do as...

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Lessons on Stop Loss

Time flies and it’s already a year since I have embarked on trading the US market. My result sheet is far from fantastic as my capital gain still fall short from my capital loss last year, despite my better trade executions this year. This is because I have downsized my positions and used less CFD (margin) to trade, as a result, my gains are smaller compared to old losses on CFD. Looking back, I would attribute 50% of my gains this year to luck and 50% to discipline. Discipline to wait for the right signal before entering, discipline to...

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Wise quotes series – II

No brain-food articles this weekend but some quotes to chew on…“As last year’s Berkshire Hathaway shareholder meeting, Warren Buffett said he has owned 400 to 500 stocks during his career, and made most of his money on 10 of them. This is common: a large portion of investing success often comes from a tiny proportion of investments.” If we flipped enough stones, we might eventually learn to identify the ‘touch gem’.If we hold long enough to the ‘touch gems’, they may eventually become our investing success! (That’s when we say it follows Pareto’s principle.) If only the touch gem...

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Revisit: Making sense of Balance Sheet & Cashflow

[First published on 25/03/2016] This is very important stuff for making sense of the annual reports and I have summarized them below in simple terms for my future lazy brain. Making sense of a company’s Balance sheet – it should all balance up In a Balance sheet there’s two parts of equivalent values: 1) Total Assets $ =2) Total liabilities and Equity This is because Equity = Total assets – Total liabilities, so both values would be the same. Equity is also known as net asset or net worth of a company. It comprises of two parts – Retained earnings (accumulative net income) and...

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Payout Ratio, Operating income & recent Watchlist

Some metrics which I have mentioned in my previous FA posts includes ROE, dividend yield, PE, PB but one metric which I have not talked much about is Payout Ratio. Payout ratio is an important metric that give us a feel of how sustainable would the future dividends of a company be (related: The Dividend Trap). This metric often gets overlooked because it is not a readily available ratio (unlike PE, PB, yield) on websites and requires some manual calculations. It’s simple enough though, so we should really be taking it into account when making an investment decision. What it...

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Weekend brain food V

I know it’s a little early for weekend but since the post is ready I shall just share it. August was a turbulent trading month for me which started off with a big plunge to account value and it finally ended with a grand $0 gain / loss for all my time and effort. The plunge was because of entering a trade too early and I hedged my position too late. Given the volatile market these days, I set a ‘take profit’ this round and locked in some profit before the market closed over last weekend. (Now with my feet...

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Weekend Brain Food IV and rumblings

Doubling wealth versus Creating just enough wealth FIRE concept seems to advocate creating just enough wealth so that we can do nothing (sing Bruno Mar’s The Lazy Song) and simply enjoy life. Just for fun…Try tabulating how long it takes for you to double your wealth. Do it till the point which you find it’s “just enough”. Then do some deep reflections on how you did it. (Congratulations if your current figure falls beyond this table’s.) 1000 2000 4000 8000 16000 32000 64000 128000 256000 512000 1024000 Methods: 1) Do you earn more than spending? How much more? 2) Does your...

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Statutory retirement age changes

“Prime Minister Lee Hsien Loong said on Sunday (Aug 18) that these changes, which were recommended by a tripartite workgroup and accepted in full by the Government, “will support older workers to continue working longer and to be more financially independent”. He announced at the National Day Rally that the statutory retirement age will go up to 63 in 2022, and eventually to 65 by 2030. The re-employment age will also go up from 67 now to 68 in 2022, and eventually to 70 by 2030.” 活到老,做到老? Would the future silver generations have the mental and physical health to...

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Weekend brain food III

This week’s reads (they are kind of random): Cramer: Don’t break these rules if you want your stock portfolio to make money 1. Panic is not a strategy 2. There is always a better time to sell than into the maelstrom 3. Stay away from after-hours trading 4. Check your emotions at the door 5. Don’t sell all at once Investors can hide out in domestic stocks from the China trade war “What we are focusing on with our clients now… are companies that are more domestically facing in terms of the source of their revenue,” Goldman Sachs chief...

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