Author: The Bedokian Portfolio

Asset Class Correlation For 1H2019

Someone I knew made a remark that for 2019, the price of everything is going up; equities, REITs, bonds and even gold. So that begs the question: is there still correlation between the asset classes? Using U.S. ETFs representing the various asset classes, an equities ETF for the Singapore market (EWS), we shall now turn to Portfolio Visualizer to find out. Name Ticker VTI EWS VNQ BND GLD CASHX Return Vanguard Total Stock Market ETF VTI – 0.93 0.53 -0.40 0.36 0.04 18.67% iShares MSCI Singapore Capped ETF EWS 0.93 – 0.33 -0.30 0.46 0.24 13.93% Vanguard Real...

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Inside The Bedokian’s Portfolio: Mapletree North Asia Commercial Trust

Inside The Bedokian’s Portfolio is an intermittent series where I will reveal what we have in our investment portfolio, one company/bond/REIT/ETF at a time. In each post I will briefly give an overview of the counter, why I had selected it and what possibly lies ahead in its future. First up, Mapletree North Asia Commercial Trust (MNACT). MNACT was previously known as Mapletree Greater China Commercial Trust (MGCCT), which was listed on the Singapore Exchange in March 2013. Initially consisted of two properties, Festival Walk in Hong Kong and Gateway Plaza in Beijing, it acquired another commercial property, Sandhill...

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Bob Is Rebalancing Yet Again, But…

We are coming into Bob’s bi-annual rebalancing again. As 30 June 2019 is a Sunday, Bob has two options: either doing it on 28 June (Friday), or on 1 July (Monday). Thing is, Bob is aware that the G20 Summit is coming up on 28 – 29 June, and along with it a possible meeting between the leaders of the two largest economic powerhouses, China and the United States, on settling the trade dispute. Bob knows that the core ethos of rebalancing is to inject fresh funds into his Bedokian Portfolio, and then adjust it accordingly to his strategic...

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Growth Stocks In The Bedokian Portfolio?

Being a dividend investor, and knowing growth investing is of a different slant, I was asked a few times on my take of having growth stocks in The Bedokian Portfolio. I had mentioned that The Bedokian Portfolio caters to growth, dividend and a little bit of both. Before I give my opinion, let us take a look at the basis behind growth and dividend (or income) investing. It’s About The Returns Investing 101: Returns = Capital Gains + Income Capital gains, as we know it, derives from the price appreciation of the asset. Income is either the dividend/coupon/interest that...

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Recap: Why Diversification Is Important?

These past few weeks had been tumultuous: the trade war was still ongoing between the United States (U.S.) and China; telecoms giant Huawei was bearing the brunt of the clampdown by the U.S.; and just recently the U.S. president had tweeted, against expectations, that Mexico would be the subject of tariffs. The equity markets, which are deemed to be sensitive to such macroeconomic and geopolitical events, took a dip. If you are at a loss at this juncture, you could read up an earlier piece on what to do when a trade war happens. On top of that, I...

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The Gold Conundrum And The Thing About Portfolios

After my piece on gold silver ratio was published, one of my acquaintances read it and asked me this question: is gold (or commodities in general) really necessary for The Bedokian Portfolio? As usual, my response is: it depends. Elaborating on my answer, I shall use the Portfolio Visualizer (seems obvious that this place is becoming my go-to site) to carry out a simple back test, with three versions of the US Bedokian Portfolio and benchmarked to the Vanguard 500 Index Investor, representing the US equity market. Bedokian Portfolio 1 (Portfolio 1): The balanced Bedokian Portfolio; 35% equities, 35%...

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The Gold Conundrum And The Thing About Portfolios

After my piece on gold silver ratio was published, one of my acquaintances read it and asked me this question: is gold (or commodities in general) really necessary for The Bedokian Portfolio? As usual, my response is: it depends. Elaborating on my answer, I shall use the Portfolio Visualizer (seems obvious that this place is becoming my go-to site) to carry out a simple back test, with three versions of the US Bedokian Portfolio and benchmarked to the Vanguard 500 Index Investor, representing the US equity market. Bedokian Portfolio 1 (Portfolio 1): The balanced Bedokian Portfolio; 35% equities, 35%...

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What Star Wars Can Teach Us About Investing

Today is Star Wars Day. For this post, I will pull out nine famous quotes from the science fiction movie franchise and relate them to our real-life investment experiences. #1: “Do or do not. There is no try.” Yoda uttered this line while training the protagonist Luke Skywalker in The Empire Strikes Back.  The key gist here is commitment. When learning about investing, or conducting your fundamental analysis, have determination and focus while carrying out the tasks. Do not do things half-heartedly. #2: “You must unlearn what you have learned.” Again from Yoda while teaching Luke in the same movie. ...

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The Gold Silver Ratio

The gold silver ratio (GSR for short) is the number of ounces (oz) of silver required to buy one ounce of gold (i.e. price of 1 oz silver / price of 1 oz gold). It is used by gold and silver traders to determine when to buy or sell the two precious metals.  Unlike most other ratios where there is a generally accepted number or a range of numbers, the GSR has none. One oft-quoted number is 17.5, which is the amount of silver to gold in the Earth’s surface. However, based on the last 30 years or so,...

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It’s That Season Again

SPH REIT had just declared their 2Q2019 results and dividends. For REIT investors, SPH REIT’s announcement marks the beginning of the so-called REIT CD (cum dividend) season, where in the next few weeks, we will see most of the S-REITs publish their finances and distributions for their quarter. For dividend investors like myself, this period is “full-of-win” as you will know how much you are getting from your REIT portfolio. If you are carrying out the Bedokian Portfolio investment approach, the distributions received will be parked at the cash portion, ready for deployment into whichever asset class in the...

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The SIA 3.03% Bond: The Bedokian’s Take

Another corporate bond is coming to town, and yes, it is the Singapore Airlines (SIA) 3.03% bonds. A few financial blogs had articles on it, so I shall just concentrate my post from a Bedokian Portfolio investor’s point of view. Let us run through this bond using my conservative selection guidelines stated in my ebook1: Bond is priced at par or discount: If you are applying for the bond at this stage and got it, it is considered as getting it at par (well almost. There is this $2 application fee which makes it slightly above par, but we...

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The Rise of The Tech Conglomerates

The moment we see the word “conglomerate”, we began to associate it with companies that have multiple business divisions doing all sorts of stuff. General Electric, Siemens and Keppel are some examples of conglomerates. Most of these known conglomerates have a very long history. Jardine Matheson started off in the 1830s as a trading company in the Far East; Philips was founded in the late 19th century manufacturing lamps.  Over the years the name of these companies became great intangible assets. Think “Mitsubishi” and the things that pop out of our heads will be cars, air conditioners and the...

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Which Bedokian Portfolio Combination Is Suitable For You?

In my eBook I had touched on three different Bedokian Portfolio variations1, each broadly suited for investors of different age groups and/or risk profiles. Let us revisit what are the three: Young investor aged 21-35 / Aggressive investor: 40% equities, 40% REITs, 10% bonds, 5% commodities, 5% cash (we call this Portfolio 1). Middle-aged investor aged 36-55 / Moderate investor: 35% equities, 35% REITs, 20% bonds, 5% commodities, 5% cash (also known as the balanced Bedokian Portfolio, which I use most of the time as an example)(Portfolio 2). Retiree investor aged 56 and above / Conservative investor: 20% equities,...

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MacBooks and Starbucks

I had mentioned about MacBooks and Starbucks in a one-liner here.  How this came about was my tendency to count the number of Apple MacBook users whenever I visited a Starbucks store. Out of 10 visits, on seven occasions I would see that MacBook users form the majority (>50%) of all laptops. I posed this phenomenon to a few of my friends and colleagues, and one of them gave me a very interesting answer; MacBook users tend to be young adults, and Starbucks is considered a hipster joint, so these two things compliment each other. Short of carrying out a...

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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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