Author: The Bedokian Portfolio

Revisiting The Three REIT ETFs

A while ago, I had written about the three locally listed REIT ETFs here, so this post is some sort of a follow-up. To recap, the three REIT ETFs are the (my short form in brackets) Philip SGX APAC Dividend Leaders REIT ETF (Philip APAC), the NikkoAM-Straits Trading Asia ex Japan REIT ETF (Nikko-Straits Trading) and the Lion-Philip S-REIT ETF (Lion-Philip). For this blog post, we shall see what would be the weightage of individual REITs and the sectors if we decide to buy all of the REIT ETFs, in equal share numbers, for our investment portfolio, based on...

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SPDR GLD ETF Lot Size Change

OK, I may be “WOLS” (internet-speak for being slow on the news), but I would like to highlight that from 14 Jan 2019 onwards, you are able to purchase the State Street Global Advisors SPDR Gold Trust (or better known as the SPDR GLD ETF) in lot size of 5 shares, down from the previous lot size of 10. According to an announcement by State Street Global Advisors on 10 Dec 20181, this reduction allows “…more Singaporeans, including Central Provident Fund (CPF) Investment Scheme members, to efficiently invest in gold…”. It also emphasized that gold “…historically acted as a...

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Bond Yield Correlation And Use Of Macroeconomic Data

With the bond yield talk recently, I had done up a simple statistical research on the relationship between the United States (U.S.) 10-year treasury yield and our Singapore Government Securities (SGS) 10-year bond yield. Using annual average yields between the years 1998 and 2018, here are the results in Fig.1: Fig. 1 – Annual average yields of U.S. 10-year treasury and SGS 10-year bond between 1998 and 20181,2. Looks closely related, doesn’t it? To give the relationship a number, I had derived the correlation between them with all the data available, and that is 0.799. So what does this...

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Stay Focused, Stay Calm And Stay Invested

Speaking about volatility; just three weeks ago, there was talk of doom and gloom in the markets, with the Straits Times Index (STI) nearly touching the 3,000-point mark on Boxing Day. As of today, the STI closed at 3,198 points, almost a 7% increase.  Along the same time period, the S&P500 had recovered some 10%; from 2351 to 2587 (before the U.S. markets opened on 11 Jan 2019). Looking back during the two weeks that straddled between 2018 and 2019, quite a number of fundamentally sound companies’ share prices were at a low, which meant buying opportunities. However, we are...

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2018 Review, 2019 Preview and Bob

I had written something similar on the last day of 2017 (see here). I felt from now on, it would be a good tradition for me to write an annual review, preview and of course, about our dear friend Bob. So here it goes for this round. 2018 Review If 2018 was a roller coaster, it would be a hell of a ride as compared to 2017 which was just a normal uphill climb. The S&P 500 Index fluctuated heavily between 2350s and 2920s this year1. For the Straits Times Index, it went to as high as 3610s and...

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Is There Blood Running In The Streets Now?

The above line was derived from the famous quote by John D. Rockefeller (or some say Nathan M. Rothschild) which goes “The way to make money is to buy when blood is running in the streets”. The colour of blood is red, which is also the same colour to denote a down market or securities price. The phrase “blood is running in the streets” could metaphorically mean the entire market is red, and/or a lot of investors/traders had “bled” their capital, incurring huge losses. It is at this time when market panic sets in and equities are at a...

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All About Price: Buyer/Seller Remorse and Premorse

This is part of my intermittent series on price, one of the most important and commonly encountered considerations in investing and trading. In this post, I will touch on a common psychological experience that most, if not all, of us had gone through; buyer/seller remorse and premorse. Buyer/Seller Remorse Buyer/seller remorse, in the context of investing/trading, is an emotion of regret that is felt after executing a transaction. The most common question stemming from this remorse is “Did I buy/sell at the right price?”. Such feelings will get amplified if a buyer buys at a price, only for it...

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Here Comes Bob (Again)

Bob will be rebalancing his portfolio with an additional injection of S$5,000 on 2 Jan 2019. And no, Bob has still yet to consider individual company securities, despite his pledge to look into them early this year. Oh well… Look out for Bob’s portfolio status here in January...

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Financial Ratios: Much More Than Meets The Eye

Looking at financial ratios is part and parcel of the fundamental analysis process, where it is carried out to determine if a company’s share, REIT or corporate bond is worth to invest. For today’s post we shall look at the mathematical aspect of ratios and how we could gain more insights into these numbers. Ratio Basics While most financial ratios are given as numbers, it is the actual end result of a fraction. A ratio is just that, a fraction, and it is made up of a numerator and a denominator. A Price-to-Book (P/B) ratio of 0.8 could mean...

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Financial Ratios: Much More Than Meets The Eye

Looking at financial ratios is part and parcel of the fundamental analysis process, where it is carried out to determine if a company’s share, REIT or corporate bond is worth to invest. For today’s post we shall look at the mathematical aspect of ratios and how we could gain more insights into these numbers. Ratio Basics While most financial ratios are given as numbers, it is the actual end result of a fraction. A ratio is just that, a fraction, and it is made up of a numerator and a denominator. A Price-to-Book (P/B) ratio of 0.8 could mean...

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The Value Trap

We all love cheap things, and in the investment circles a lot of people also love “cheap” companies based on their valuations, for they are not really priced at their actual value, thus there is money to be made in the price-value difference. Whether you are a value investor, a growth investor, a dividend investor or a combination of either two or all three, the potential is there. However, there is also this term that floats around the investing community, and that is “value trap”. This phrase is usually used, seen and/or heard when sourcing for “cheap” companies. What...

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T2023 S$ Temasek Bond

By now, quite a number of financial bloggers had covered the upcoming T2023 S$ Temasek Bond (the Bond), so I will just give my opinion from a Bedokian Portfolio investor’s point of view. Bond Overview Let us have a look at the details of the Bond: Figure 1 – Overview of the T2023 S$ Temasek Bond1 As highlighted in my ebook The Bedokian Portfolio2, a bond is consisted of three basic components; the bond principal, the coupon rate and the bond maturity date. From the information in Fig. 1, the bond principal is at least Singapore Dollar (S$) 1,000.00 (for...

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T2023 S$ Temasek Bond

By now, quite a number of financial bloggers had covered the upcoming T2023 S$ Temasek Bond (the Bond), so I will just give my opinion from a Bedokian Portfolio investor’s point of view. Bond Overview Let us have a look at the details of the Bond: Figure 1 – Overview of the T2023 S$ Temasek Bond1 As highlighted in my ebook The Bedokian Portfolio2, a bond is consisted of three basic components; the bond principal, the coupon rate and the bond maturity date. From the information in Fig. 1, the bond principal is at least Singapore Dollar (S$) 1,000.00 (for...

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The Red Scare

The whole world went red during the period of 10-11 October, sending investors and traders alike panicking. Fear and anxiety gripped the financial markets as almost all major indices took a nosedive during those two days. While I shall not dwell on what really happened and will this happen again next week (short answer: I don’t know), but we can learn a few quick lessons from this tumultuous session. Lesson #1 – Do Not Panic When news buzzed around about the fall of share prices and indices sometime on the morning of 10 October, some investors around me began...

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The Red Scare

The whole world went red during the period of 10-11 October, sending investors and traders alike panicking. Fear and anxiety gripped the financial markets as almost all major indices took a nosedive during those two days. While I shall not dwell on what really happened and will this happen again next week (short answer: I don’t know), but we can learn a few quick lessons from this tumultuous session. Lesson #1 – Do Not Panic When news buzzed around about the fall of share prices and indices sometime on the morning of 10 October, some investors around me began...

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