Make smarter financial decisions together

Ask for opinions and get answers from other Singaporeans.

ASK A QUESTION
Most Recent
  • Asked by Anonymous

    Leonard Tan
    Leonard Tan
    18 Answers, 31 Upvotes
    Answered 1d ago
    Building up on Hariz's reply, derivatives in isolation are essentially worthless and derive financial value from an underlying asset(s) tracked. There are many different types of derivatives- most popular for retail investors being options and futures. Derivatives can very easily magnify loses and gains-making it a very dangerous tool- especially to uninformed investors. Used properly however, Derivatives can be used by shareholders to manage exposure and hedge against risks. Covered calls and protective puts- are just some of the strategies people use to minimize their exposure to downside risk!
  • Asked by Anonymous

    Richard Woon Tian Jun
    Richard Woon Tian Jun
    21 Answers, 42 Upvotes
    Answered 15h ago
    Good question - though this method does have some subscribers, it is quite difficult to execute effectively in real life. Before dividends are paid out - they have to be declared first. This declaration will also cut off the date of purchase of stock eligible for the said dividend payouts (which is known as an (which is known as an ex-dividend date ), and usually these declaration dates are quite some time before the actual payment of dividend. As a result, before such ex-dividend dates usually new investors are willing to pay a premium for the stock, hence driving the price of the stock up. If you were to purchase the stock just before this date, the cost of trade + premium you pay for the stock will most likely make the gain from dividend non-existent. After the ex dividend date is declared, usually the stock price falls - because now investors are not willing to pay more for a stock that they are not eligible for the dividends of. Hence, if investor confidence and stock fundamentals are not strong in the first place, you are looking at potential capital losses on the trade. After all, there is no free lunch in the rather efficient stock market. i think it is more advisable purchase high paying dividend stocks that payout consistently because it aligns with your investment goal in the long term, such as REIT.
  • Asked by Anonymous

    Sandra Teo
    Sandra Teo
    26 Answers, 49 Upvotes
    Answered 13h ago
    Hi there! Mapletree REITs are often considered "defensive" stocks due as it is a buffer to the rising interest rates. 2 out of 4 of DBS's top "buy" REIT picks are from the Mapletree Group, Mapletree Logistic Trust (SGX:M44U) and Mapletree North Asia Commercial Trust (SGX:RWOU). The Mapletree Logistic Trust (MLT) reported a solid quarter (sept 2018) with strong numbers, where gross revenue grew by 13.8%, NPI increased by 14.6% and DPU improved by 3.8%. MLT has been on an acquisition spree over 2018 thus providing inorganic growth opportunities for the trust in China, Hong Kong, Japan and Australia. Mapletree North Asia Commercial Trust (NAC) is expected to show stable income and lengthening of portfolio due to its recent acquisition of commercial properties in Japan. This expansion to Japan provides further inorganic growth opportunities. Additionally, the REIT is facing an upcoming expiration of several anchor tenants (in Festival Walk, Hong kong) where the REIT will be able to adjust rental rates. One point to note is that the growth rate for NAC has been slow however, its growth is steady. The other two Mapletree group REITs are the Mapletree Industrial Trust (SGX:ME8U) and Mapletree Commercial Trust (SGX:N2IU). Maple Industrial Trust is looking to expand and grow its overseas data centre exposure to 20% of assets, twice of its current exposure. The Mapletree Commercial Trust (CapitaCom) focused on real estate office sector currently has the second highest market capitalization and analysts are expected the REIT to gain momentum in 2019. The Mapletree group REITs currently has an average dividend yield of 6.3% and all four REITs consistently report YoY growth in NPI. Personally, I feel that the Mapletree Group REITs have a strong management team which is essential in any REITs. Additionally, Mapletree has ties with Temasek, allowing for greater knowledge and synergies in the real estate industry.
  • Asked by Anonymous

    Sandra Teo
    Sandra Teo
    26 Answers, 49 Upvotes
    Answered 6d ago
    The most basic method would be to look at the equity/stock ratio. In simple terms, the percentage of stock to bonds in the portfolio. This ratio implies that as equity (stock) exposure increases, risk increases. Another method would be to calculate the standard deviation . S.D. is a measure of volatility that is the spread of returns around the average return. The higher the standard devaiation, the greater the uncertainty in annual returns, translating to a higher risk. Stocks typically exhibit larger standard deviations than bonds. Apart from looking at the standard deviation, another measure of risk is the beta . Beta measures how sensitive an asset's return is to an index. This method is often used as it is easily quantifiable, allowing investors to ascribe a number to the market risk and compare assets.
  • Asked by Anonymous

    Yixiong Chang
    Yixiong Chang
    192 Answers, 250 Upvotes
    Answered 10h ago
    rephrase and elaborate your question pls?
  • Asked by Anonymous

    Yixiong Chang
    Yixiong Chang
    192 Answers, 250 Upvotes
    Answered 11h ago
    you can buy private property whether locally or overseas. The requirement is just that you have to continue to be staying in the HDB.
  • Asked by Anonymous

    Richard Woon Tian Jun
    Richard Woon Tian Jun
    21 Answers, 42 Upvotes
    Answered 13h ago
    Hi anon, beyond the currency risks that you are exposed to as explained by Leonard in another answer, bad debt issues show that the corporate governance and filtering system of India's banking loan system is questionable - If they are giving out debt without first doing a financial soundness check on the likelihood that such debt is going to be paid back, then how can you be sure that the corporate bonds themselves aren't the same? this has been an ongoing issue for a few years now - India's stressed asset dilemma has resulted in the creation of a entire host of debt restructuring companies in order to restructure bad debt. The most recent fining and threat of imprisonment for Rcom's Anil Ambani for not paying back the debt to Ericsson in India just goes to show the audacity that certain corporations have to rules and regulations of debt issuance. Tread carefully in the India debt market, especially with regards to those which are restructured - the risk level is still high. Do research the companies that you intend in purchasing the corporate bonds of, and their Cash flow and debt/equity ratio. it is imperative that they are financial sound and able to comfortably pay off any particular debt they may have.
  • Asked by Anonymous

    Yixiong Chang
    Yixiong Chang
    192 Answers, 250 Upvotes
    Answered 13h ago
    In a simplistic explanation: Normal yield is 'rising curve' - rate is higher the longer the duration. Becos people expect higher rates the longer the lock-in duration. 'invert' just means that any of rates of the long term are lower than its shorter term. This is becos investors might expect recession or deflationary environment ahead. They would rather accept a lower rate (guaranteed) than risk losing in stocks or other vehicles. Therefore demand for the longer term bonds increases, pushing down yield.
  • Asked by Anonymous

    Sandra Teo
    Sandra Teo
    26 Answers, 49 Upvotes
    Answered 14h ago
    According to LMIRT's earnings report, NPI declined by 10.5% and gross revenue increased 16.4% The REIT attributed the decline in NPI to the weakening of the Indonesian rupiah, the new tax regulations implementd (10% tax on service & utility charges) as well as the increase in total operating expenses. DPU fell by 40.4% to 2.05cents SGD. Although LMIRT has taken over the mall's maintenance and operations instead of outsourcing to a third party vendor in light of the new tax regulations, it was not enough to offset the drop.
  • Asked by Anonymous

    Richard Woon Tian Jun
    Richard Woon Tian Jun
    21 Answers, 42 Upvotes
    Updated 1d ago
    Hello! Regarding this question, I definitely think that if you are a beginning investor, most professionals would advice you to invest in the S&P 500, and by proxy its ETF. This is because the S&P 500's composition is made up of the United State's 500 largest companies by market capitalization, which essentially provides fantastic diversification opportunities, and create stable market returns. More importantly is the ability of the S&P 500 to bounce back from recessions - thus far the S&P is on a long term uptrend, and after every recession we see that the S&P is able to bounce to twice, even thrice the previous high before the next business cycle hits. This general uptrend gives you great certainty that a "buy and hold" strategy will be able to generate positive total returns at the end of the day if you hold in for the long term. International stock markets may not have ability to do so, as evidence by Japan, whose stock price have yet to really break out from the real estate bubble highs of the 90s. Essentially, it is on the assumption that the market will continuously grow at a steady pace that buy and hold strategies, and thus passive trading strategies, can provide steady returns in the long run. The ETF that is recommended by Mr Victor Chng is an excellent example of a passive ETF that has low fund management costs, ensuring that you obtain the maximum returns.
See more questions

Download Seedly’s free

Expense Tracking App
Download on the App StoreGet it on Google Play
  • Sync all your banks in one place
    Sync all your banks in one place
  • Quickly add transactions and view reports
    Quickly add transactions and view reports
  • Community Q&A and blog integration
    Community Q&A and blog integration