Author: The Bedokian Portfolio

Specialist Diploma In Fund Management And Administration

First and foremost, this is not an advertorial nor am I representing the institute that offered this specialist diploma. I am writing this since I had graduated from this course and would like to share my experiences with you. I felt this course is suitable in understanding how the financial markets, the fund industry and their related functions work. Overview Of The Course This one-year program is offered on a part time basis by Nanyang Polytechnic. There are a total of six modules, three each in one semester. The first semester covers the fund management aspect and the second...

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The Three REIT ETFs and The Bedokian Portfolio

When my ebook was launched in July 2016, there was no local REIT ETF available to speak of. Fast forward to the present day, there are now two REIT ETFs listed on the Singapore Exchange (SGX), and one coming up soon. From an index investor’s perspective, this meant more choices in selecting one or a few suitable for his/her investment objectives and methodologies. By now there are quite a number of articles written about these three REIT ETFs on other investment sites and blogs. For my post today, I will analyse them from a Bedokian Portfolio investor’s point of...

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The Next Big Thing

Being an active investor, we would want to know what is the next big thing, as this is where we can get potentially good returns. Problem is, we mostly know it on hindsight, and it is a bit too late to enter the fray by then. So, before it happens, the answer to the question would be at most a guess, but if we guessed it wrongly, the next big thing may become our next big mistake. To look out for the next big thing, we need to consider two questions: how to spot it and whether is it...

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Are We Heading For Another Dot Com Bust?

With the rise of tech companies and the prominence of tech-related issues such as driverless cars and AI (artificial intelligence), some veteran investors and traders may be wondering, “Are we heading for another dot com bust?” Well, the answer is somewhere out there and only time can tell, but let us try to find one by going through some of the trends and indicators that we can see now. First, we shall go through a history lesson. The Original Dot Com Boom and Bust The original dot com boom and bust period was generally accepted to be between late...

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Using CPF for The Bedokian Portfolio? Part 2

In this part, I will describe on how to go about implementing your Bedokian Portfolio using your CPF Ordinary Account (OA). Take note that I am posting this from the perspective of an investor who is below 55 years old. Ideal Amount to Start It is recommended to start off the CPF Bedokian Portfolio in one shot, much like the one bought using your disposable income with the same reasonings.1 The ideal quantum to start, after setting aside a buffer for your home mortgage payments and/or kids’ education fees, would be $36,500 ($36,500 – [35% x $36,500] – [10%...

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Using CPF for The Bedokian Portfolio? Part 1

The Central Provident Fund (CPF) is (from the CPF website) “…a comprehensive social security system that enables working Singapore Citizens and Permanent Residents to set aside funds for retirement. It also addresses healthcare, home ownership, family protection and asset enhancement.”1 Basically it is an account to save up for your retirement, but the savings inside could also be used to pay for your housing, medical bills and investments. I shall not go into the details on the workings of the CPF (you could find the relevant information from the CPF website at www.cpf.gov.sg), but rather on whether we could...

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The Bedokian Portfolio and the US Market

Over the National Day holiday I was fiddling around with an online backtesting tool at www.portfoliovisualizer.com, which I had used it for my post “Keep Calm and Ride The Waves” back in April 2017, and a thought came up; how would The Bedokian Portfolio fare in the US financial market. Using the Balanced Bedokian Portfolio (35% equities, 35% REITs, 20% bonds, 5% gold and 5% cash), I backtested it and here are some of the findings: The Compound Annual Growth Rate (CAGR) for the period of 1994 to 2016 was 8.66%. If US$10,000 were invested in January 2001, with...

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Ceteris Paribus

If it sounds Latin to you, yes it is. In English the term ceteris paribus is “other things equal”, meaning in an experiment or observation setting where the relationship between two variables or factors are studied, all others are taken as constant or unchanged. Ceteris paribus is often used in economic studies, where analysis of cause and effect between two variables in a given situation is carried out to give a result in the absence of other variables. Though in the real world there are many factors at play to produce a given market or economic situation, ceteris paribus...

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It’s Been One Year

Exactly one year ago, I had launched my ebook The Bedokian Portfolio and this blog. I would like to thank you, the reader, for your support and I hope you have benefited from this blog as well as from my ebook. To date, there has been almost 15,000 pageviews to this blog, and slightly more than 1,000 downloads of the ebook. Review and Going Forward I had written 30 articles for the past year, covering topics from macroeconomic issues such as interest rates to how to store your physical gold and silver. These articles are meant as additions and...

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Tactical Asset Allocation

If you have read enough portfolio publications and books, you may have came across this term called “tactical asset allocation”. According to Investopedia, tactical asset allocation is “an active management portfolio strategy that shifts the percentage of assets held in various categories to take advantage of market pricing anomalies or strong market sectors”.1 In other words, your portfolio’s asset class allocation will change according to the prevailing environmental factors and economic conditions. Taking the balanced Bedokian Portfolio for example (35% equities, 35% REITs, 20% bonds, 5% commodities and 5% cash), if the market is pointing to a boom period...

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Bob Is Rebalancing

I had mentioned here that Bob would be rebalancing his Bedokian Portfolio with an S$5,000.00 capital injection on 30 June 2017. Let us go through how he did it step by step. In The Morning When the market opened at 9:00 AM on 30 June 2017, Bob checked the opening prices of the securities in his portfolio. He then translated the prices to the table below (Fig. 1). Fig. 1 Note: USD 1 = SGD 1.38 Bob added S$5,000.00 to the cash component, bringing it up to S$7,019.22 (see Fig. 2). Fig. 2 Purchasing The Securities There are now...

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More On Associative Investing

Back in August 2016, I had touched on the concept of associative investing to capitalise on disruptive technology companies, where we could invest in areas that support and/or result from these firms, especially since there is little or no avenue to invest in the said companies themselves.1 The basis for associative investing is simple; all sectors and industries are dependent on one another, and it is making use of these interdependence relationships to carry out investing. For example, if you want to invest in e-commerce, besides e-commerce companies, you could take a look at sectors and industries that are...

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Have I Forgotten Bob?

No, I do not. In fact, I still remember him and his Bedokian Portfolio. This is the nature of passive investing, where the portfolio would just sit there (and be easily forgotten) and you do not look at it again until the time that you want to rebalance it. Anyway, since we had started this test portfolio at the beginning of the year, let us take a look at the status as of 6 June 2017: *USD/SGD rate at 1.38, from www.xe.com as at 6 June 2017 **Inclusive of dividends from STI ETF of S$185.50 and from Philip AP...

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The Rise of Robo-Advisors

Financial technology, or fintech, is revolutionising the financial world in terms of processes and services, and one of the products of fintech is the robo-advisory. On the investment front, robo-advisories, or robo-advisors, would help you craft your investment portfolio according to your needs, preferences, and risk profiles. The robo-advisor would then, if you want, automatically maintain your investment portfolio, which includes rebalancing. If you are a passive Bedokian Portfolio investor, this would mean an even more hassle-free maintenance of your portfolio. However, before jumping into this, there are a few points that you may need to consider. Costs Robo-advisors...

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Commodity-Related Companies for the Commodities Asset Class?

A question popped up by one of my friends with regards to the commodities asset class in The Bedokian Portfolio. He asked instead of getting gold, silver and oil, could he replace them with gold and silver mining, and oil companies? After all, they are in the commodity business. To give my answer, it will be a “no”. Why No The main aim of the commodity asset class is to have a form of insurance against the volatility of the markets, in accordance to reducing portfolio risk through diversification of asset classes1.  That being said, it is better to...

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