I'm having a serious case of FOMO here with most index funds going on a discount of late. I just finished my home renovation and so need cash for paying the contractors. But also hurting from seeing everything being on discount... Fellow Bogleheads, anyone been in this situation before? What did you do to stop yourself from doing something stupid like liquidating certain "safer" emergency funds like backup FD to put into index funds at this time?

ben felix says that when you buy an ETF, buy the general ETF and not industry specific ones. don't try to pick and choose. dominos actually outperformed all the other tech stocks

should be this video, sorry i've no time to double check. his videos are worth checking anyway

Hello all Boglehead sifu here

What are the effective method to prepare for next economic crisis/stock market crash? Asking for more general in a very long term, anything possible to happen will happen, consider it already happened many time in history.

-considering events like 1997 or 2008 crisis, global index drawdown could be >50% and take years to recover. Holding a fully diversified equity portfolio might hardly avoid that.
-deliberate allocation to gold, US treasury or other kind of asset particularly useful for crashes
-always have some dry powder ready
-"I can smell it before stock market crashes!"

There is a difference between treasury bills and commercial papers. The former is cash, whereas the latter is not.

Sorry for the heresy talk. 😆

Please continue DCA VWRA discussion ..

😆
Worry not still within boglehead topic of looking for MMF 😆

Count me in.

I'm also onboard ETF via Rakuten Trade.

Started Investing in Bursa since 2012, although return has been nice, I am beginning to lose hope in Malaysia Economy

Loading the few ETF into my portfolio slowly:
1. ICLN Nasdaq
2. LIT Nasdaq
3. HYDR Nasdaq
4. TAN Nasdaq
5. 2809.HK

I'm going heavy on alternative energy, because the price of energy will not drop so soon. Everybody needs energy. Oil and Gas difficult to get funding from financial institution leads to higher price of production

Hello all,
I'm happy we have a Boglehead chapter Malaysian chapter! I was feeingl lost and isolated in a sea of stock pickers and crypto fans lol. I literally read every post and learned so much, especially about bond allocation which I'm very confused with. You guys are awesome and I'm glad there are people in Malaysia who believe in the investing style I do.

I'm a late starter, unfortunately.

I wish wish wish I knew about the Boglehead investing philosophy in my 20s, but now I'm 45 and slowly realigning my portfolio to this allocation:

70% equitties - VTI, VXUS, VOO --> But will just put in VT from now on for simplicity's sakes. In the future will transition to Irish domiciled ETFs. probably next year.
10% REITS & some local blue chip stocks - SUNREIT, AXREIT, Maybank
20% Fixed income - mostly money market and FD. I have some in ABFMY1 ETF also

I have ways to go to adjust my portfolio. In my 30s I bought the smooth talk of a Public Mutual unit trust salesman and just let her pick whatever stock. As a result I'm now overweighted in Malaysian equities . But it's way too scary to sell now cos that unit trust is down soooo much. So I'm not going to touch it.

Instead, I'm hyper accelerating my investments, just pouring most of it into VT, which I buy using Rakuten Trade cos it's only RM8 per trade. I'm ALSO slowly move my investments out of SA into VT (at a loss, ouch).

Yes, about my US ETFs. I totally understand about the witholding tax issues, but after watching a video by Zeit where he compared buying US ETF vs Irish domiciled ones, I think my portfolio too kecik to worry about that now, and I don't think I can afford the big bullets of investing in LSE for now. I'm also working up the courage to open an IBKR account --> I just don't feel secure using an online broker not approved by SEC yet.

I got a question for all of you - in your equities portion of your portfolio, are you all 100% foreign equities (US & world), or do you have a mix of M'sian and foreign equities in your portfolio? If I have a choice I want to keep my Malaysian equities to just 10% of my portfolio cos I have no confidence with the Malaysian economy.

sometimes the pro and cons are not so clear cut. for example, yesterday US markets rallied, however if you stuck to only Irish Domiciled etfs, you are unable to topup more units on the spot as LSE had a public holiday. chasing today when Irish Domiciled starts trading later is too late

my stand could change if Irish domiciled can give me 0% tax instead of still a 15% rate

A great add-on to my previous post.

"If you’re excited about an investment, it’s probably not a good investment."

may i know where do we add this trusted contact person

Still holding brkb and vwra

Anyone ca share their etf profile?

Is there any specific reason you look for the USD-hedged Global Aggregate ETF instead of just buying the US Aggregate Bond ETF?

Your points make sense. Reasonings are clear as well.

A few things to be mindful though:

1. The actual bond holdings of the Aggregate funds (be they US/Global) are very different from the index. Sometimes you see Chinese/Japanese government bonds at the top 10/10% holdings in the fund sheets while in some other cases the top 10/10% holdings may be US corporate + treasuries. Most bond ETFs use the "stratified sampling" methodology where only a portion of the bonds universe are sampled and selectively represented by the fund. hence, the ETF exposure can be wildly different from what the index really represents. You are advised to read the annual report/interim report of the ETF to have a full look of the entire fund's bond holdings before you invest in it.

2. Hedging currencies involved the use of FX swaps/forwards which are derivatives. As with all derivative contracts, there is implicit leverage (and implicit lending/borrowing for swaps). Most likely, the ETF's bond holdings will be used as a collateral for those swaps/forwards positions. In extreme events, those collateral positions may give you trouble (think of UK pension fund's LDI crisis). And from my derivative class lesson, hedging currencies with swaps/forwards are usually costly in the sense that the market will move against you when you enter into such contracts. (Technically, we say the uncovered interest rate parity does not hold and the counterparty investment banks tend to make a profit with a Sharpe ratio of about 0.5.)

So if possible, use natural hedging (invest in the share class whose currency you are comfortable with) or choose the unhedged share class of the ETF. Try to keep the underlying as simple/as close to just the bonds itself without all those unnecessary derivative positions.

Highest peak was +USD1.3k, lowest peak was -USD3k

Now hovering break even point.

HODL!!!! and DCA.

50 50 between VWRA and MIT and MLT.

Im not really a Boglehead as I do buy individual securities in addition to indexes.

i also dont have a fixed asset allocation like Bogleheads do.Currently, portfolio positioned quite conservatively. This is the approximate asset allocation of my portfolio:

50% Bonds
25% Equities
10% Gold
15% Cash

Abt 10 years investment horixon

Roughly 90% are govt treasuries or govt guaranteed. Another 10% are high yield (5% of portfolio). Mostly in bond ETF that freefall last year.

As mentioned, I dont have fixed allocation and can make big switches using the ETF portion.