Provided of course.. That explained the Telcos earlier good stock performance. . But once everyone has a decent data plan, how do you grow revenues?

This post has been edited by Cubalagi: Jan 18 2020, 10:36 PM

Sometime this year I plan to start buying into ABF SG Bond ETF. I had pretty good results investing in the Malaysian one. Hopefully MYR strengthen further.

I've never bought any bonds even though I've read about it.
Does the price of bond ETF go up during financial crisis or recessions?

These are not just any bonds. Abysg and Abfmy invest in the local currency government bonds, basically the most boring and safe securities out there.

Super boring and safe that most retail investors ignore them. For me I use them like a hedge and wealth protection. Same like Gold.

The most important determinant for govt bonds is ithe country interest rate. Where Interest rate fall, then bond prices go up. Interest rate go up then bond prices go down.

In a recession/deflationary environment interest rate will go down. So last year, we had some economic weakness that result in interest rate falling the world over.

Can see the results:

ABFMY: 1 Yr Price gain: 9.25%, Dividends 3+%. Total return of 12+% in MYR

ABFSG: 1 Yr Price gain: 5.84%. Dividends 2+%. Total return of 8+% in SGD.

Not a get rich scheme, but not bad for safe and boring instruments! And unlike gold, it pays dividends.

Tbh I have trimmed down my bond and gold exposure as I've been more bullish equities. But will start to look to accumulate both again for the coming SHTF moment. Just hope it's later than earlier.

And Abfsg is on my to buy list coz 3 year worse case outlook. Global recession and BNPAS wins next GE..

This post has been edited by Cubalagi: Jan 19 2020, 09:18 PM

Cause he anti SG market. He is not dividend investor but he chase capital gains. SG market all stocks more or less stagnant. But if you know where to look, you can find good income stocks.

Thanks for sharing on ABF bonds.

I have held and traded gold since 2002. Without dividends and just holding and doing nought, my gold CAGR is 12% in MYR terms. So pretty good for doing nothing with it.

But this ABF bonds looks interesting.

Yes, I also believe in gold. Both are protective, meaning the more things suck, the better they will perform, but they offer a bit different effect.

For gold, u only get price gains and it's volatile. You can get down years and those years could be terrible years, with nothing to show. So have to be very long term and be patient.

For ABF, you could still get down years but it's less volatile. And while you wait those down years, you get income. For Abfsg, the dividend is higher than SG FD 12 months rate. For abfmy, it's about the same as a Maybank E-FD 12 month rate) but it has better potential for price gain). Of course longer term, I would expect gold to perform better (Higher risk, higher returns).

What about compare with S REITs vs Abfsg. Again, higher risk higher return. Obviously Reits will have higher potential returns. Abfsg holds bonds, issued and guaranteed by Singapore govt. That's triple A rated stuff. Higher than US Govt. Low returns but best for SHTF economic disasters.

My approach to SGD is different. I am not willing to invest in SGD assets with a return of a meagre 1.5 to 2%. I looked at the ABFSG price trend over the years. The returns is quite awful

The reward/risk with SREITs beats this ETF hands down.

Long term (from 2005), the average annual total return of abfsg was 2.5% pa in SGD terms. Not great, but beats SGD 12 mth FD. In MYR because of devaluation, my calculation is 4.02% pa.

On Sreits, yes, so far. As I said higher risk, higher returns.

But in a bad recession, even reits will drop. This one will go up. Again this is protection, it's not to make double digit returns, at least until SHTF moment come. The idea then is to reallocate/rebalance your portfolio.

I said only SG REIT is worth investing. If REIT is not dividend stock, I dunno what it is.

Actually Singapore got few good dividend stocks. Nor as good as US market in terms of growth but still decent.
DBS, OCBC, sats, Jardine and family, micro mech, ums.

Another ABF look alike but better if you like will be NikkoAM Corporate grade bond fund.

Returns are a little more exciting than ABF. Im vested with that. Things are getting exciting this year. Many bargains. Stocks will fall opening monday as uncertainty over the virus in sg will surely affect one way or another.

Try looking at Kimly and Food Empire Hldgs too.

They have a few performing 1, but most are underperformed even though dividend is high (SINGTEL, SINGPOST, STARHUB, CDG, SEMBCORP, SC MARINE, KEPPEL, RAFFLES MED...the list is very long. I can go on...

Anyone watching China market opening?

Anybody getting DBS? Or waiting for it to drop?

DBS below 25.00 can collect or not? collect for divy

Too late, bounce back to 25.xx

aiya too late for me to collect.

https://www.straitstimes.com/business/econo...likely-hit-from

Tough times for SG economy.

Got chance. Why aim 24.xx when you can aim lower with the lower and level now set to orange?

Awesome. Able to convert more RM-> SGD

This post has been edited by Ramjade: Feb 8 2020, 08:10 PM