Positioning 101

Hey fans out there, i need your favor to sink into deep thoughts on the following questions:

1. Are you afraid to lose your hard-earned money?
2. Do you keep all your available cash in your savings account / fixed deposit?
3. Do you have all you cash in one single currency?

Should your answer to any of the above questions is "Yes", you are exposed to investment risk. Why? Read on....

1. Since you are afraid to lose, your sub-conscious mind will instruct you to keep it well in a "Tin can" stashed away from public eyes.
2. If you a little smarter, you would keep the money in your savings account or fixed deposit earning slightly over mediocre interest.
3. Thinking that S$ will remain strong against other currency, you chose to keep all your money in one currency.

All the above will subject you to very high investment risk. Still don't understand? Read on....

1. Putting your money in a "Tin can" will not earn you any interest; which will eventually be eroded by inflation + GST.
2. Being a little smarter, the little interest you receive for parking your money with a bank will only cover either inflation cost or GST.
3. Having all your money in one currency will only expose yourself to exchange rate risk. Also, most deposit interest rates on local currency (wherever you are) are lower. Hence, you might lose money due to exchange rate without knowing it.

Things got a bit brighter now? Therefore, it is good to have a qualified advisor help you plan your financials. Don't be Penny Wise Pound Foolish!

Structured Investments

Happen to get my hands on a comparison between 2 structured products launched at almost the same time. You make your own judgement should you be keen to subscribe to it. My advice is to have your "financial health" checked by a qualified advisor before leaping into this. :)


Anyway, should you be keen to find out more, there is a free seminar on 1st June 2007 (Friday), from 7 - 9pm at Capital Towers, FTSE Room.

You may RSVP with Benjamin Lee at 63200669. Limited seats available.

Calmness Before A Storm

While Dow ended the last positive and Asian markets opened positive this week, many would think that weather had turned bright again. I would love to be very sure, but my guts feel is telling me to be careful; there will always be a period of calmness before a storm. So punters out there, pls stay vigilant. :)

God Bless.....

UT Portfolio as at 26 May 07

My portfolio grew by 6.6% in a week, thanks to Europe & China. However, I am a little concern of the sustainablility of this bull run. To play safe, i decided to take profit and reinvest into a balanced portfolio of equity and fixed income fund. You will be able to see the change in the next 2 weeks.

Here is my scorecard for the week:

Remember the 2% per day return?

Forget it lah.... its 50 cents to $6,000,000 TOTO jackpot! Quickly join the Queue! :P

UT Portfolio as at 19 May 07

There are alot of speculation on the bubble bursting, especially after Li Ka-Shing's comments this week.

The market are made up of big time institutional investors (like Mr. Li) and many small time speculators (like myself). If you follow the market closely, you will realise that when these institutional investors ("big boys") take profits from the market, a rippling effect will form; small player follow suit in cashing out on their investment subsequently - causing short term corrections. However, with growing market efficiency, more influx of small players might just create a shift in control of market directions.

Currently in Asia, it was witnessed that most new investors happen to be small players who wanted a try their hands on the "hottest slot machine" - China / Hong Kong Stock Exchange. With the increase in market players, it is not surprising for the big boys to shock the market in a bid to scare away the weak-hearted punters. In my opinion, the big boys just want to show that they are still in control.

However, all this might change in a very near future. With information readily available and small players being more investment-educated, the investment table might turn. A stronghold the small players created together could easily manipulate the market in any way they wish. The effect would be even greater than any market movements witnessed before..... this will be the REAL BUBBLE.

Here's my scorecard for the week:

Is this Market Noise or Bubble formation?

I happen to speak to a fund manager (who specialises in Asian Markets) today, asking her on her thoughts of the various negative comments in the market - formation of the equity bubble (in China).

She mentioned that she have been through a few corrections through her many years investing in Asian equity. She concurred that "the Bubble" is indeed growing larger by the day, but she do not foresee the bubble bursting anytime soon. We also discuss about China 2008 and possible fiscal policies the authorities would take to prevent the bubble from burst too early.

However, she warned me about the "Silent Killer" - when everyone is talking about the bubble, most would have taken necessary precaution which results in dying-off effects of negative noise. And when that happens, the real danger lurks............