Stocks and Trading Thread - Channeling your inner Mono

[mongers]

But strangely Uber's price didn't move much.

Hobson's choice?

[Admiral Yi]

Hobson's choice?

I don't follow.

[mongers]

Hobson's choice?

I don't follow.

If I was clever I explain and have made it a better analogy. 

So we're just have to go with the 'it's the only pony in town' - what other smartphone driven ride scheme is possibly going to make billions for investors, perhaps?

[Habbaku]

...you mean besides Lyft?

[Admiral Yi]

Did you buy some Saudi Aramco mono?

[Monoriu]

Did you buy some Saudi Aramco mono?

No.  It is only listed on the Saudi Arabia Exchange.  I don't have access to that.  I just feel very sad that Saudi Aramco didn't choose to list in Hong Kong

[MadImmortalMan]

Find a HK ETF that's in it. That's how I shorted the Shenzhen exchange for the Chinese crash a few years ago.

[Admiral Yi]

Is anyone willing to talk about their own equity/bond distribution?

Rule of thumb says 60/40.  I'm 100% stocks, a little cash waiting for a dip to buy into.

I just think yields are just to low to hold bonds.  I've also heard too much a bubble in bonds caused by investors chasing shitty returns.

[Camerus]

I'm ca. 15-85 bonds to stocks. That's a historically somewhat risky ratio, sure, but one justified by low interest rates and my relatively younger age and longer timeframe for investing.

No cash, as I view (Canadian government) bond ETFs as a better alternative to cash in the medium and long runs.

A dip or even major correction  /  bear is clearly coming at some point, but as the saying goes, more money has been wasted waiting on the sidelines for a correction to happen than in actual corrections. Think of the money you would have missed out on staying on the sidelines in 2019, for example.

Besides which, there's so much pessimism about next year's returns that I wonder how much of that is already baked into prices.

[crazy canuck]

I missed out on 2019 by not investing new funds but I kept the funds I had invested in play.  Still wary about putting new money in.

[Habbaku]

Is anyone willing to talk about their own equity/bond distribution?

Rule of thumb says 60/40.  I'm 100% stocks, a little cash waiting for a dip to buy into.

I just think yields are just to low to hold bonds.  I've also heard too much a bubble in bonds caused by investors chasing shitty returns.

I'm 100% stocks at the moment in my retirement portfolio with some crypto. I expect to be 100% in stocks for at least 15 more years, though I seriously question your portfolio's balance as you're presumably much closer to retirement than I am, Yi.

[Richard Hakluyt]

5% bonds, 25% cash and 70% stocks.........despite my age 

But our principal assets are various public sector pensions which, presuming the country doesn't collapse, are inflation-proofed and very solid.

[Admiral Yi]

You bond guys in bond funds or own individual bonds?

[Tonitrus]

My investments are predominantly equities, with a mix of selected blue chip stocks and also a fair bit of a dividend/income focus (mostly in REITs).  The idea being a split of modest/conservative growth and good, steady income to supplement the eventual pension.  Hopefully making post-retirement employment highly optional.

But then maybe I'm an investment idiot.   

[Camerus]

You bond guys in bond funds or own individual bonds?

Bond funds. Easier to buy, and can be sold pretty easily if stocks tank and a buying opportunity arises. Also makes rebalancing easier.

Flip side of course is more obvious price fluctuation, especially based on interest rate movement, which obviously seriously undermines the purpose of a bond. With low rates we have now that's a bit of a problem for the future. On the other hand in the event of a dip in stocks, interest rates may be cut again, thus driving up bond ETF value and making rebalancing even more advantageous. In the Canadian context the Bank of Canada has signaled there will likely be no raises in interest rates for a while, but we'll see what happens.

In the event, the Canadian bond funds my wife and I own haven't had phenomenal returns obviously in this current bull, but they've easily beat inflation on average and beaten most if not all high interest savings account rates available to us. I think there's only been one year where total returns resulted in a loss, but even that was just around 1%.