The Permanent Portfolio Might Do Worse in Retirement than the Traditional Equity Bond Portfolio (Guest Post)

The Permanent Portfolio Might Do Worse in Retirement than the Traditional Equity Bond Portfolio (Guest Post)

When it comes to wealth accumulation, many are a fan of Harry Browne’s Permanent Portfolio. Recently I wrote about it here.

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This post was originally posted here. The writer, Kyith is a veteran community member and blogger on InvestingNote, with username known as Kyith and 700+ followers.

One of the main take away from my article yesterday on how do you make $500,000 last for 60 years by withdrawing an initial amount of 5% of the portfolio was that high volatility is not very desirable when it comes to spending down our wealth.

So naturally, the permanent portfolio comes to mind a portfolio that is made up of components very uncorrelated that reduce the overall volatility.

If we revisit the table of portfolios recommended by famous experts the PERM and Risk P have the lowest standard deviation, lowest maximum draw down (MaxDD), good risk adjusted returns (Sharpe).

So how would they do in Timeline App?

I try to fix as much of the variables as yesterday’s base case, with only modification to the portfolio allocation:

1. I have a wealth of $500,000 that I wish to live off of

2. I want to see if I can start off spending $25,000 for the first year of my financial independence. This is 5% of my initial wealth of $500,000 (we call this an initial withdrawal rate of 5% versus the 4% withdrawal rate)

3. For subsequent years, I increase and decrease the $25,000/yr based on the inflation rate. If inflation is +4%, it will be the previous years’ spending x (1-0.04) and if inflation is -2%, then it is previous years’ spending x (1-(-0.02)). I will maintain my purchasing power (inflation adjusted)

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[Recap] Active Traders’ Club Exclusive Gathering

[Recap] Active Traders’ Club Exclusive Gathering

Last evening, we had our Active Traders’ Club gathering, where we got the leaders and members of the Club down for a night of presentations, discussions and fun!

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First off, we had Dan Chang (@dAnccs, Top 10 in the SGX Bull Charge Stock Challenge, Remisier), who presented on how to strategize a robust trade plan.

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Next, we had TheBearProwl (Aaron Sim @thebearprowl, 1st Position in the SGX Bull Charge Stock Challenge, Blogger) who presented on the current bear market situations.

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After that, we had Robin Ho (@robinho, Top-Tier Remisier, Blogger and Veteran Trader) present on his outlook on the US and HK markets.

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An advocate of derivatives such as index futures and Daily Leverage Certificates (DLC), Robin also presented on how retail traders can utilise such derivatives to enhance their trading returns as part of their day trading strategy.

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Healthcare gems on the Catalist Board (Guest Post)

Healthcare gems on the Catalist Board (Guest Post)

The outlook for the Singapore economy is expected be clouded by global economic and political uncertainties. The MAS’ (Monetary Authority of Singapore) twice-yearly review expects domestic drivers to support the slower growth of the economy.

Healthcare services is one of these domestic drivers – its fast-growth underpinned by an aging population and rising disposable incomes.

On SGX, there are about 30 healthcare stocks and they run the gamut from producers of disposable medical consumables, to chains of GP clinics, medical specialists and biotech start-ups.

The net profit margin (NPM) of the different categories of healthcare stocks varies widely and is one of the significant factors affecting their share price performance. The top six by NPM have all outperformed the Catalist Index- and all are Catalist-listed.

This post was originally posted here, by our partner website Investor-one.com.

Table 1: The four categories of SGX healthcare stocks

*Data as at Apr 16, 2019

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Trump’s Trade War and His Twitter “Gauntlet”

Trump’s Trade War and His Twitter “Gauntlet”

The Trade War has escalated once again.

Yes, you guessed it right.

All by the SNAP of Trump’s fingers.

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On Sunday the US president decided to snap his fingers and tweeted that tariffs of 10% on certain goods would rise to 25% on Friday, and $325bn of untaxed goods could face 25% duties “shortly”.

This has caused both US and Chinese stock markets to dive.

For months, investors and companies had been lulled into a sense of security that the world’s two largest economies appeared to be getting closer to a deal to resolve their battle.

That calm was utterly shattered this week.

How’s it all going to affect you? Yes YOU, the diligent Singaporean retail investor.

This is a serious, volatile and gloomy time for all investors.

Join us at this exclusive event to find out what Top traders think on Thursday, 16th May 2019, 7 – 9pm.

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Here’s what to expect:
Are we turning into a bear market? The special case of an STI component stock
Singapore, Hang Seng Market Outlook
Thinking like The Big Boys: Using Game Theory in Daily Trading
Fibonnaci Levels in Trading: What Can Numbers Show

Strategising a Trade Plan
Panel Discussion: What’s Interesting To Trade For the Month Of May? How will stocks move forward?

Time, tide and the Trade war waits for no man.

Limited seats only. But feel free to bring a friend along.

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Exclusively for Active Traders’ Clubs members only.

Join the Club now  https://www.investingnote.com/groups/42

[Giveaway] Happy Labour Day: LAST Pair of tickets to Our Biggest Event of the Year!

[Giveaway] Happy Labour Day: LAST Pair of tickets to Our Biggest Event of the Year!

[Giveaway] Happy Labour Day, Community members! (yes we know it’s tomorrow but we wish it started today)

We know you’ve been working hard…so we’ve got ONE LAST Pair of tickets to giveaway for the upcoming event: In The Footsteps Of Masters: Going Beyond #myfirsttrade“, co-organized with our partners DollarsandSense!

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These pair of tickets are worth $56!

Here’s how you can win in just 2 simple steps:

1) Like our FB page: https://www.facebook.com/investingnote/

2) Go to our messenger bot here and follow the instructions after clicking the link: https://m.me/investingnote?ref=w5813410

That’s all! Easy right? 😁

One lucky winner will be picked on 7th May Tuesday and contacted via FB messenger. So watch this space and stay tuned!

For more information on the event, visit https://dollarsandsense.sg/myfirsttrade/.

*just a note, we will not be accepting walk-ins as tickets have been sold out.

[Exclusive Event] The Traders’ Circle: Gear Up For Trading’s Most Well Kept Tips & Secrets

[Exclusive Event] The Traders’ Circle: Gear Up For Trading’s Most Well Kept Tips & Secrets

3 veteran trading experts in their own fields, come together in one setting, on this exclusive event: The Traders’ Circle.

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Join us on Saturday, 18th May for this exclusive, intensive and informative workshop hosted by 3 key, acclaimed speakers in the trading industry, spanning from 10am to 2pm. Stocks, Forex, CFDs, Options, we’ve got it all.

Quick register here!

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Session 1: Spot Turning Points In The Market With Trendlines By Jay Tun

Regardless if you are new to trading or has been trading for awhile, knowing where the turning points possibly are will undeniably give you an edge in the market.

To the untrained eye, it seems almost magical how some of the “experts” are able to know whether a trend is changing in advance.

In this session, Jay will showcase how he use trendline to tell the strength of trend as well as to spot possible turning points in the market using it.

You will learn in this session:

✔ What are trendlines?

✔ What makes trendlines effective?

✔ Trendlines vs Support & Resistance: which is better?

✔ Using trendlines to spot possible turning points.

✔ Incorporating trendlines into your analysis?

 

Session 2: Secrets To Making Money From The Forex Markets By Karen Foo

Forex markets are extremely volatile and most retail traders don’t make money.

Karen, ranked #1 in a Singapore nationwide Forex trading competition will show you her secrets in successful FX trading.

Here’s what you’d learn in this session:

✔ 4 vital components you need to success as a forex trader

✔ How to determine forex entry points with confirmation

✔ Why risk management is more important than your trading system

✔ How to ensure that your trading will last and be profitable in the long run

✔ How to determine if your trading system is profitable

 

Session 3: Trading Secrets Even Professionals Don’t Want You To Know By Thomas Yin

Whether you are new to trading or an experienced trader trading in options, forex, stocks or even futures, understanding the proven formula to be consistently profitable can make or break your trading success.

By understanding the proven formula for trading success, you can increase your win rate, stack the unfair advantage on your side whenever you trade and be profitable consistently regardless of which market you trade in.

In this session, Thomas Yin will showcase his proven formula for trading success. He’ll share with you how his unique strategy helped traders to successful trade the markets.

What you’ll discover in this session:

✔ Why Trading Is The Best Way to Double, Triple or even Quadruple Your Money Spending Only An Hour A Day

✔ How Anyone Can Be A Top Trader Even if You Have No Experience Or Zero Talent

✔ How To Have An Unfair Advantage Stacked In Your Favor Whenever You Trade So That You Always End Up Profitable Consistently (Works Whether it’s on Options, Forex, Stocks or Futures)

By the end of the training, if you are new to trading, you will have a proven formula to start trading successfully and if you are already trading yourself, you will be able to improve your trading results by getting more profits and more winning trades.

Attendees will also get a free gift at the end of the presentation which is the personal watchlist used by Thomas Yin to trade the markets. This is the same watchlist which has generated Thomas Yin well over 6-figures in profits every year and below is just one example in his watchlist which he personally traded. This one trade generated him well over $30,000 in profits when he followed his watchlist to buy the stock at $11 and selling it at over $26.

This is The Traders’ Circle. Unlock your trading potential with the help of 3 critically-acclaimed traders in just one setting.

Get to mingle, network and ask questions with them. Strictly limited seats.

Register Now, Come Later!

Event starts in:

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Should You Leverage Up Your REIT or Stock Portfolio? (Guest Post)

Should You Leverage Up Your REIT or Stock Portfolio? (Guest Post)

There is emerging trend of experts teaching folks to build wealth with the aid of leverage. Leverage means, using other people’s money, in a lot case the banks money, to aid you in building your asset base.

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After the large DFA article last week, I do not really feel like writing a lot of stuff. There is probably a lot of other stuff I need to catch up upon then to do one humongous article every week.

So this week one is a little breather. It is some numbers that I ran some time ago.

I think I decide to bring it out.

This post was originally posted here. The writer is a veteran community member and blogger on InvestingNote, with username known as kyith and 700+ followers.

You have folks like Kim Eng who is able to give to loan you currently a 3.28% interest rate loan on your shares. This enables you to buy shares more than you can afford to and speculate on them. When you earn as you sell off the shares, you earn a lot more. Conversely, if you lose as you sell off the shares, you lose a lot more.

Now, the idea for a lot of people is not to do leverage irresponsibly. We all want to do the sensible thing, but to make use of what is available to us so that we can accelerate our wealth building.

So basically, rather conservative wealth builders wish to use leverage to step up and build their wealth. It makes me wonder how conservative we are.

Here is the Setup

We are going to invest in good blue chip stocks and Real Estate Investment Trusts (REITs).

And we are going to choose to invest in 1, or more of these, to form a portfolio that gives us a 7.5% per year compounded rate of return (hypothetically). If you want to take a look at whether its achievable, you can take a reference on the dividend yield that you can get on my Dividend Stock Tracker. Those are dividend yields, and do not show the future compounded growth rate. The growth rate can be +2 to 5% or -2 to 5%, depending on which you choose. Not all stocks are appreciating over time.

Let’s say we make use of Kim Eng’s margin financing which enables us to invest in selected stocks and REITs at a rate of 3.28% (this rate used to be 2.88%. When the global interest rate moved up, it also gets shifted up. This gives you an idea that these rates do not stay stagnant).

According to the strategy, we want to use leverage to build up our financial assets.

However, we do not want leverage to kill us. So at some point, we will pay back the debt.

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What Is A DLC? Top 5 Reasons Why You Should Trade A Daily Leverage Certificate

What Is A DLC? Top 5 Reasons Why You Should Trade A Daily Leverage Certificate

Daily Leverage Certificates (DLC) are exchange-traded financial products that enable investors to take a leveraged exposure to an underlying asset, such as a blue chip stock or an equity index.

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DLCs replicate the performance of an underlying asset versus its previous day closing level, with a fixed leverage factor.

There are new DLCs with 20 regional blue chip stocks ranging from DBS to Tencent, as the underlying asset! Check out the full list of DLCs here.

For investors who want to maximise their short term exposure to market movements, DLCs can provide the opportunity to increase the exposure by a fixed factor, up to 5 times.

For DLCs with blue chip stocks as the underlying, the returns are magnified by 5x! For indexes, you can select a leverage from 3x, 5x or 7x!

Also, it doesn’t matter if the market is bearish as well – you can buy a short DLC to capitalise on a bearish situation.

For the 5x DLC with Venture as the underlying asset, it actually yielded a return of more than 70% in a week, just back in February!

The following is a detailed infographic by SGX on the Top 5 characteristics of DLCs.

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If you’ve missed our previous post where we posted a quick video on how DLC works, watch it here.

For more educational materials on DLC, use this link: https://dlc.socgen.com/en/education/handbook

Now that you’ve understood what DLCs are, see the full list of DLCs that can be traded here.

Last but not least, if you’ve never traded a DLC  and would like to know how, see if you qualify by taking the Specified Investment Product (SIP) test here.


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