Disclaimer: The content in this article seeks to provide more information, is solely my opinions, and does not constitute financial advice. Please do your own due diligence and understand that financial transactions carry risks. Information such as index components and prices (among others) are based on information available in June 2021.
I started to write this article because I’ve been receiving questions from friends regarding investments in Exchange Traded Funds (ETFs). A basic explanation of ETFs and other common financial products can be found here.
Here is the main question which I try to provide possible answers to:
The London InterBank Offered Rate (LIBOR) is an interest rate at which banks charge each other in the interbank market. It is a primary benchmark for short-term interest rates around the world.
The LIBOR was previously known as the British Bankers’ Association (BBA) LIBOR. Now that the responsibility for its administration was transferred to the Intercontinental Exchange (ICE), it is also known as the ICE LIBOR. The LIBOR is published every London business day for 5 currencies (USD, GBP, EUR, CHF and JPY) for 7 different tenors (O/N, 1W, 1M, 2M, 3M, 6M and 12M).
I haven’t been too familiar…
Disclaimer: This does not constitute any form of investment advice so please use this methodology at your own risk.
For this analysis, we hope to observe some form of seasonal trend within a stock market and come up with a simple strategy to take advantage of this trend. A basic level of Python (more specifically Pandas) is used to manipulate the data. As this is supposedly a simple strategy, there will not be usage of statistical analysis or predictive techniques (these can and will be covered in the future).
Here, we will be looking at the Singapore stock market. A…
Disclaimer: Experiences are from my perspectives and varies between companies (even between teams within the same company). These are simply reflections on my time in the company (in case I forget what I did 10 years down the road) and to provide some generic information to people interested to find out more.
Fresh out of university, I started my first full-time job in the technology division of a foreign investment bank in Singapore. The bank offers a wide range of services spanning investment banking, sales and trading, asset management, private banking and consumer banking. As for me, I was placed…
Have you ever tried a strategy where you double your bets every time you lose, hoping that the next win allows you to recoup all accumulated losses? Turns out, you were using the martingale strategy, a popular gambling strategy that started in 18th century France.
This article attempts to draw some conclusions regarding the adoption of this strategy through the use of 2 simulations:
In these simulations, we are going to play European roulette. We bet on the…
Blue-chip stocks usually form part of a value investor’s portfolio. Here, I explore the construction of a portfolio that should theoretically provide good returns with relatively low risks.
Disclaimer: This does not constitute investment advice nor do I endorse the use of any related code here to make investment decisions. These are purely exploratory — you can use them at your own risk.
The below strategy is a quantitative one. The major assumption here is that historical prices have some predictive power over future prices and market inefficiencies exist. Other assumptions arise as part of Markowitz’s portfolio theory.
A mutual fund is an investment vehicle that pools money from investors to invest in a variety of securities such as equities, bonds, property, etc. Fund managers are hired to make investment decisions in order to achieve capital gains or dividend income for investors.
In the context of finance, diversification is a widely adopted risk management strategy. It refers to holding a portfolio with a mix of asset (or asset classes), avoiding significant exposure to any particular asset. Stocks will be used in this article for the purpose of illustration, but these concepts extend to other asset classes as well.
Investments are often associated with two types of risks:
As some of us begin our journey into university or the workforce, we begin to think about what we can do with our money.
An investment is an asset that you acquire with an aim to generate income or grow in value. You purchase an asset with your money today in the hopes that its value increases in the future.
Probably the number one reason why anyone decides to invest. Investments, when done properly, can yield consistent returns. Returns can be in the form of dividend (or coupon) payouts (eg. stock dividends — receiving a portion of the stock’s value…
Investment decisions are undertaken daily by finance professionals. These decisions are difficult because it involves the estimation of an asset’s value and returns, as well as assessing its risks. This led to the rise of various asset pricing theories which seek to formalise the way risks and returns are derived.
The Capital Asset Pricing Model (CAPM) and Arbitrage Pricing Theory (APT) are perhaps the two most influential models used in asset pricing. The models are used to obtain a required rate of return on an asset which is used to discount its cash flows to determine its price.
Singaporean. A self-taught programmer who started off as a software engineer and is now pursuing a career as a quant. Always learning.