SINGAPORE: The Straits Times Index (STI) generated a 6.5 per cent decline in total returns in 2018, said Singapore Exchange (SGX) in a report on Thursday (Jan 3). It added that the non-weighted average return of the 30 STI constituents for last year was a decline of 8.4 per cent. The five strongest stocks in 2018 were Dairy Farm International, Jardine Matheson, ComfortDelGro Corp, CapitaLand Mall and Singapore Tech Engineering, with average total returns of 15.7 per cent, said the local bourse operator. For the 10 years ending 2018, the STI generated annualised total returns of 9.2 per cent, thanks to the reinvestment of dividends. The figure is one-fifth higher than the regional Asia Pacific benchmark, and in-line with the FTSE ASEAN 40 Index, said SGX. "Without reinvesting dividends the STI ‘s annualised return over the 10 years would have been 5.7 per cent. "Dividends have played a key role in these annualised returns, and following the … [Read more...] about STI generates 6.5% decline in total returns in 2018: SGX
Doubleline total return bond fund fact sheet
By Gordon Pape Special to the Star Fri., Nov. 23, 2018 Interest rates are rising. When that happens, bond prices drop. It’s one of the basic rules of investing. But how is that playing out in today’s investment climate? You may be surprised. The Bank of Canada has raised interest rates three times this year, with another quarter-point move possible in December. You would normally expect that such aggressive action would significantly knock down bond prices. However, the FTSE Russell Canadian Universe Bond Index was down only 0.12 per cent year to date as of the Nov. 16 close. In other words, only a tad below break-even. Government bonds took the biggest hit, off 0.22 per cent as a group. Corporate bonds were actually ahead 0.16 per cent. Not big numbers either way. And what about stocks? To that point, the S&P/TSX Composite Index was down 6.5 per cent for 2018. Where would you have rather had your money? Mutual fund returns reflect a similar … [Read more...] about Rates are heading up. Time to buy bonds?
By Derek Horstmeyer The Wall Street Journal Sun., Nov. 4, 2018 For older investors considering which allocations to overweight and underweight in their retirement accounts, the advice most frequently given by financial advisers for years has been to favor the bonds. This was good advice once. But not any longer. No one is saying bonds shouldn’t play a big role in our investment portfolios, especially as we get older. Bonds are less subject to big price swings than stocks. They also spin off cash with their regular interest payments, and so can produce much-needed income in one’s later years. But bonds no longer hold big tax advantages when it comes to choosing the contents of an IRA or other tax-sheltered/tax-deferred account. Recent research suggests that the best type of investment to overweight in a tax-advantaged retirement account is an actively managed REIT or small-cap equity fund. This isn’t surprising given that actively managed funds tend to … [Read more...] about The case against having a bond-heavy retirement account
NEW YORK: For stock investors, the recent spike in bond yields may be prompting some uncomfortable deja vu.Back in late January and early February, there was a 10 percent correction in the S&P 500 , with stock investors spooked as Treasury yield increases intensified with a monthly payrolls report showing the biggest wage gains for workers since 2009.This time around, strong economic data worried bond investors, who sent the benchmark yield on Tuesday to 3.261 percent, the highest since early May 2011.“A sustained rise in rates is probably reflective of improving economic conditions, so that in and of itself isn’t necessarily a bad thing for stocks,” said Willie Delwiche, investment strategist at Baird in Milwaukee. "Where it does get tricky for stocks is how fast they are rising. That’s where you get a similarity to what happened in January.”The S&P was down nearly 4 percent in less than five sessions as of Wednesday afternoon. Still, that decline … [Read more...] about Graphic: Rising US bond yields bring back Wall Street’s sinking feeling
The Trump administration is under fire for its policy of separating children from their parents at the US-Mexico border. As a result, the Department of Homeland Security on Monday published what it described as a fact-check of its family-separation policy. It details “myths” about the policy and blames the media and members of Congress for negative stories about it. But it leaves out the main reason the US is separating families: the Justice Department’s new hardline zero-tolerance policy on border immigration. The Department of Homeland Security published a “Myth vs. Fact” document on Monday in an attempt to cool the political firestorm around its family-separation policy – but it avoided mentioning its new zero-tolerance policy that is behind the decision to intentionally separate children from their parents. The self-described fact-check, published on … [Read more...] about A Trump administration ‘Myth vs. Fact’ sheet on family separation avoids the most important point about the policy