Sector Diversification

In my ebook The Bedokian Portfolio, I constantly harped on diversification of asset class and foreign financial markets, but I did not touch much on sector diversification. In this blog post, I would share a bit on the sector aspect. What is a Sector According to Investopedia, sector, or sometimes called the industry, is “… an area of the economy in which businesses share the same or a … [Read more...]

Keep Calm and Ride The Waves

2017 had opened with a big bang for the local financial market. For the period of 3 January to 13 April, the Straits Times Index (STI) had taken a tremendous rise from 2887 points on 3 January to 3169.24 points on 13 April, with reaching a high of 3187.51 points just two weeks ago1; Gold had risen from USD 1158.84 to USD 1287.92 along the same timeframe2; Singapore REITs (S-REITs) had also gone … [Read more...]

Of Rights, Warrants and Your Bedokian Portfolio

If you belong to the active camp of investors of The Bedokian Portfolio, chances are you might see the terms “rights” and “warrants” in your individual equities and REITs counters. For this post, I will share what are rights and warrants, how these would affect your Bedokian Portfolio and what to do about them. Rights Rights are entitlements to existing shareholders for the purchase of … [Read more...]

Physical Gold and Silver, the Whats and Hows – Part 3

In this final part about physical gold and silver, we will look into how to maintain, keep and store your bullion. Packaging Bullion bars come in two forms; cast and minted. Cast bars looked like bricks and are considered “no frills”, having being produced from a simple mould and come with no packaging. Some bullion dealers would shrink-wrap the cast bars to protect them. Minted bars are … [Read more...]

Another REIT ETF is Coming

Good news for index investors; There will be another REIT ETF coming out by end March 2017. Called the NikkoAM-Straits Trading Asia ex Japan REIT ETF, this would be the second REIT ETF listed in the local Singapore Exchange after the earlier Phillip SGX APAC Dividend Leaders REIT ETF, which was launched in October 2016. About the ETF Nikko Asset Management, the people who brought you the … [Read more...]

Physical Gold and Silver, the Whats and Hows – Part 2

In Part 1, I had touched on spreads, weights and spot, the spread within the spread, and a little bit on mints, refineries and the London Bullion Market Association. In this part, I will go into semi-numismatics and numismatics (or known as semi-numis and numis), jewellery and why they are not ideal for physical gold and silver investments, and whether you should go for bullion bar or … [Read more...]

Physical Gold and Silver, the Whats and Hows – Part 1

Holding physical gold and silver in the form of bullion is one of the recommended ways of having the commodities asset class in The Bedokian Portfolio. I had mentioned briefly in the ebook1 on what to look out for in getting physical gold and silver, and in this blog post I will elaborate a bit more on the whats and hows of physical gold and silver. Shapes and Weights Gold and silver bullion … [Read more...]

The Emergency Fund

In The Bedokian Portfolio, I made a very brief mention about the emergency fund1. I also stated that it is up to you how much your emergency fund should be and it must not be mixed into the Bedokian Portfolio's cash component. One of the questions that I had was how to build this emergency fund in the first place. I did not cover this part in the ebook as this issue is more of a personal … [Read more...]

Bob’s Bedokian Portfolio Had Started

From this post, on Tuesday (3 Jan 2017), the first trading day of 2017, Bob had invested SGD30,000 and kickstarted his Bedokian Portfolio. Here is a summary of what he had transacted: Asset Class Security Price No. of Shares Amount (including transaction costs) Percentage Equities SPDR STI ETF S$2.96 3,500 S$10,395.48 34.65 REITs Philip AP … [Read more...]

An Interest on Interest Rates

The Federal Reserve (known as the Fed), which conduct the monetary policy of the United States, had just announced an interest rate hike of 0.25%, with the possibly of another three more hikes in 20171. For The Bedokian Portfolio investor, such information is important in the conduct of fundamental analysis (FA). Interest rates belong to the economic conditions category, the highest level of … [Read more...]

Putting The Bedokian Portfolio to the Test

After much promotion and ramblings of The Bedokian Portfolio, I have decided to put it to the test. To make it more personalised, let us name the owner of the portfolio as Bob. Bob had finished reading The Bedokian Portfolio and would want to use SGD30,000 earmarked for investment to implement it. He would start off as a passive investor and concentrate on the local market, but as time goes by … [Read more...]

SRS and The Bedokian Portfolio – Part 3

In this final instalment, I will share some tips on how to administer your Bedokian Portfolio with the SRS funds factored in, using the three methods that I had shared in my previous posts, namely separate portfolios, joint portfolio and core-satellite. Separate Portfolios Basically this means your usually-funded (i.e. Bedokian Portfolio funded with your disposable income) and SRS-funded … [Read more...]

SRS and The Bedokian Portfolio – Part 2

Previously, I had talked about utilising your SRS funds and apply it to The Bedokian Portfolio, including using a core-satellite approach, lump them together as one big portfolio or keep them separated. For Part 2, I will touch on the withdrawal of the SRS account and its tax implications.   In a typical Bedokian Portfolio, where it is formed using your disposable income (which I will call it … [Read more...]

SRS and The Bedokian Portfolio

The Supplementary Retirement Scheme, or SRS, is “part of the Singapore government’s multi-pronged strategy to address the financial needs of a greying population by helping Singaporeans to save more for their old age”.1It is similar to the Central Provident Fund (CPF) in that it is a retirement savings scheme, but the SRS is voluntary and there is some flexibility to it as compared to the … [Read more...]

Great Expectations

In recent times, there has not been a political event that has a profound effect on the financial markets than the upcoming United States presidential elections. According to the polls, the two major candidates are almost neck and neck, and there is extensive media coverage on the social, political and economical consequences should either one becomes President. On the investment front, there … [Read more...]

The 12% Limit

There was an interesting conversation on investments that I had with a friend of mine. He has a simple equity-bond portfolio and the weightage is 60-40 respectively. As we chatted on we started to go into the nitty gritty of his portfolio, and what he revealed next came as a surprise to me. His portfolio is consisted of only two individual companies at the equity portion, and a corporate bond … [Read more...]

Passive or Active Investment

One good thing about The Bedokian Portfolio is that it gives you a choice to be either a passive or active investor. A passive investor would just look at his/her Bedokian Portfolio once or twice a year, do the necessary rebalancing, and off he/she goes until the next rebalancing cycle. An active investor (like myself) would keep tabs with the goings-on in the financial markets and rebalance … [Read more...]

A New REIT ETF is Coming

It has been all over the local business news recently, with the impending launch of a new REIT ETF in the second half of October 2016. By now a number of financial and investment blogs would have talked about it, so I will just give my perspective on it as a Bedokian Portfolio investor. Basic Information The upcoming REIT ETF will track the SGX APAC ex Japan Dividend Leaders REIT Index1, … [Read more...]

Averaging Strategies

Averaging strategies are commonplace in the world of investing (and trading). The two straightforward averaging approaches are “average down” and “average up”. If you do not know what are the ups and downs, here is a brief introduction to these terms. Average Down According to Investopedia1, the definition of average down is: The process of buying additional shares in a company at lower … [Read more...]

Rebalancing Woes

Rebalancing is the act of bringing your portfolio back to its original allocation, therefore reducing your risks through diversification. It also helps to sell away good performing asset classes and buy in non-performing ones.1 However, there are some occasions where it is a bit difficult to do rebalancing. The main reason for this is there is nothing in the non-performing asset class to buy … [Read more...]