` Moneytalk: Contact me
Contact me
[Sunday, November 02, 2008 | 21 comments ]

Kay can be contacted at kay@moneytalk.sg

21 comments

blurfrog said... @ February 6, 2009 6:37 AM

Hi Kay,With the launching of DBS STI ETF, I have a feeling that the STI constituents stocks might move uptrend. What is your view on this?

Kay said... @ February 7, 2009 2:27 AM

Hi blurfrog,

I'm not that sure whether the STI constituents stocks will move upwards. It really depend on how much the fund is buying. Besides, I'm not sure whether they have divulge when are they buying in the stocks for the fund.

Hunk said... @ April 7, 2009 10:19 PM

Hi Kay,
Do you think now is the right time to invest in Gold ETF (GLD 10US$)?

Kay said... @ April 8, 2009 2:49 AM

Hi Hunk,

Gold is not within my area of expertise thus I'm afraid that I'm not able to offer you much help regarding your question.

Kay

Anonymous said... @ July 2, 2009 11:06 AM

Hi Kay,
I am new in shares trading.

May i know what is all about the shares behind with the XX.ES.0907?

thanks

Kay said... @ July 3, 2009 10:02 PM

Hi,

If I'm not mistaken, those are extended settlements contracts.

Kay

bbqchickenwings said... @ September 17, 2009 10:07 PM

Hi Kay, just thought that you should read this. Another side of the story on ETFs that you strongly advocate.

http://seekingalpha.com/article/141517-why-etfs-are-a-scam

Kay said... @ September 19, 2009 10:22 PM

Hi bbqchickenwings,

I think I seen this article before. Thanks for sharing anyway.

Kay

Kay said... @ September 20, 2009 2:42 AM

Hi bbqchickenwings,

Interestingly, I found another article that was written in response to the article that you posted.

http://seekingalpha.com/article/142600-etfs-are-a-scam-i-don-t-think-so

Kay

James said... @ November 6, 2009 4:30 PM

Hi Kay,

I am new to ETF and trading in general. I am in my mid-20s and I am interested to start investing in US ETF for the long run.

I hope you can help me get started here as I have a few questions:

1) Is it better to buy US-based ETF through a local or foreign broker, taking into account the fees and exchange rates? I am confused about how to calculate the exchange spread involved and how do compare them?

2) And if I were to buy US ETF through a local brokerage, which provide the best exchange rate spread?

3) There are many US ETF which track the S&P500 index, like Vanguard, SPDR, MCSI.
Which one should I choose as all sounds the same to me?



Thank you for your time.
Jamest

Kay said... @ November 7, 2009 11:43 PM

Hi James,

1)There are pros and cons for each options. The charges for the foreign brokerage are likely to be less than that as compared to a local brokerage. However, the custodian for these foreign brokerages are not likely to be based in Singapore. In the event that something goes awry, it will be difficult to take any action.

2)I'm not too sure about this since I've been only using the services of one brokerage so far.

3)In general, you can go with the ETF that has the lowest expense ratio, lowest tracking error, longest track record, significant fund size and so on. Make sure that the ETF is also cash-based.

Kay

I am a winner said... @ December 2, 2009 12:30 AM

hey, i was wondering in singapore how do we achieve the 10% on our ROI yearly,

Kay said... @ December 5, 2009 12:21 AM

Hi,

To achieve a 10% return in every single year may not be possible but it is possible to achieve an annualized return of 10% if you invest for a long period of time. What you have to do is to buy stocks with sound financials or ETFs when their price is depressed. This will often come at a time when the majority of investors will not dare to buy. When the market recovers, you will be sitting on some profits. Do this for a few more times and you should expect to see a decent return on your capital. What you need is to be able to take on a contrarian view and overcome your emotions of fear and greed.

Kay

Anonymous said... @ July 12, 2010 3:47 PM

Hi Kay,

Can I check with you that if I want to take up the share builder plan (dollar averaging acc) under poems for STI ETF, can I start the contribution at any point of time or should I go in at the lowest point? Appreciate your advise. Thank you.

Rdgs
David

Anonymous said... @ July 13, 2010 10:32 PM

HI Kay,

Could you write about Traded Endowment Policy? What is this ? Is it an investment tool ? How safe it is compared to stocks?

Thank you

Regards
Phyllis

Kay said... @ July 20, 2010 10:22 PM

Hi Phyllis,

I will try to get an article up if I'm free. Currently, I'm quite tied up now thus I'm not blogging as frequently as I would like to.

Kay

Kay said... @ July 23, 2010 10:30 PM

Hi David,

Well, the golden question is that how do you know when will the lowest point be ? This is something which is hard to predict. So I'm suggesting that a good time to start is when the market is at its low and vice versa. Buying near and throughout the bottom is much easier than catching the absolute low.

Kay

Anonymous said... @ January 9, 2011 9:20 PM

Hi Kay,

Chanced upon your blog and it has been very informative for newbie like me.
I have a question on your reply to David on 23 Jul 2010.
You suggested buying near and throughout the bottom. We are now no longer at the bottom i guess, so is it still advisable to go into the market? I am thinking of starting to buy some STI ETF..

Thanks in advance.

Norvin

Kay said... @ January 9, 2011 11:59 PM

Hi Norvin,

There is no easy answer to your question. The STI is now quite far away from the bottom although I do think that there is still some way for it to go before it reaches a peak. Either you can see this time as a time for you to gather more capital so that when the market corrects or falls significantly, you can take the opportunity to snap up the STI ETF. But going by past instances, a bull market may last for a really long time such as a few years and one really has to be patient to wait for the correct opportunity while watching the index reaching new highs. On the other hand, if you are contemplating to start a DCA, then this question is not really that relevant.

Kay

Anonymous said... @ January 10, 2011 8:56 PM

Hi Kay,

Thanks for your advice. I have limited amount of money to invest every month as i just started work sometime ago. In your other posts, you mentioned about SBP by Phillips Capital but it seems like the fees charged will be quite significant given the small amount of investment made every month. Any suggestion in where i can park my small savings and accumulate to wait for the next correction? What do you think about the bond ETF like ABF ETF?

Thanks for your time.

Norvin

Kay said... @ January 13, 2011 10:34 PM

Hi Norvin,

IMHO, there is no correct suggestion to do now. Park your funds as cash in savings account will ensure that your funds get eroded by inflation as inflation is forecasted to be high for the next year. Park your money in bonds is not ideal since the yield is very low now.

Kay

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