Ok, I'm going to stop my usual Tools for Titans programming to just quickly talk about some of the good stuff coming out from the financial blogosphere in Singapore.
While I do not have a direct business relationship with Big Fat Purse, I am grateful for the the work that they have in put in to unite financial bloggers under one informal grouping. The gatherings and networking sessions conducted by BFP ( with food duly paid by them ) was very beneficial because, at least for me, I was allowed to befriend other financial bloggers and tap their brains when I face some investing dilemmas of my own. It's also not easy to get a group of introverts to get out to share investing ideas with each other.
A couple of months ago Alvin Chow shared a paper with me by Dr.Fong Wai Mun on the Novy-Marx Gross Profitability approach modified with a dividends investing methodology and was kind enough to reveal that he wants to develop a new approach to investing in local stocks.
The paper was very interesting so I brought it one step further to use SMU's Bloomberg terminals to backtest the strategy to see what would have happened if I applied this form of investing for the past 10 years.
The result is that I would have made 19+% per annum with a fairly impressive Sharpe ratio.
Not revealed in BFP's article is that the minimum dividend yield of this approach is 4.57% which makes it fairly attractive to a dividends investor as well.
I will not steal the thunder from BFP but I think whatever they intend to do has been independently verified by me using a Bloomberg terminal.
This means that there is a compelling reason for an intermediate investor to listen to what BFP has to say about investing in the local stock market in 2017.
I hope to reinforce the idea that we financial bloggers are the good guys in this industry and we are rapidly evolving into a serious counter-weight to the financial advise industry in Singapore.
You may find the link to the BFP annual letter here.
( No, I am not paid to write this article or do research for BFP. )