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I always get this question from clients whether should they convert their USD or GBP (or whatever foreign currencies) to SGD (or to other currencies). Similarly, I am always asked whether should they sell their stocks to buy something else. The same applies to properties. On the surface, these questions appear to be legitimate. But in reality, these clients were expressing irrationale … [Read more...]

That is right, Deutsche Asset Management seems to be pulling many of its ETFs out of Singapore. It has delisted and will be delisting a large number of its db x-trackers ETFs from the SGX. Sources: HERE,  HERE , HERE and HERE. I am not surprised that many of these ETFs are closing down. Here are some reasons why: Reason 1: Some of these ETFs are of no meaning and should not even … [Read more...]

Questions: "Wilfred,  under what circumstances would bonds and equities drop together?" Answer: High yield bonds or also known as junk bonds are positively correlated with equities. Here is the 5 years correlation matrix of the various asset classes based on monthly returns on SGD: The Bloomberg Barclays Global High Yield and Citi Global Emerging Markets US Dollar Government Bond are … [Read more...]

Much has been said in the media about the benefit of Exchange Traded Funds (ETFs). But like all financial products, there are situation which its purchase is not suitable. So here are a few scenarios in which investing in Exchange Traded Funds may not be suitable. When the focus is not large cap There are countless number of Exchange Traded Funds all over the world. But very few really make … [Read more...]