Author: Investment Stab

Why you should not follow the financial news when investing

Are you one of the “investors” whom invest in stocks after reading the hot picks recommended by financial banks or advisers? By faith, you trust them for their superior knowledge and right away, you jump straight into your investment. However, the share price immediately starts to drop and regrets sets in instantly. This might be the typical story that you hear from the streets while chatting with your friends, where the “recommendations” might just differ and changed to “news” or “rumors”. The only reason is because these “news” often lagged behind share price movements. Why is this so? News...

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2015 will be a Great Investment Year

2015 will be a great investment year for everyone – if we buy the right investment. Historically over the last 70 years, the third year of all US presidents have been the most positive year in the US stock market. Photo from Kenneth L. Fisher’s Market Never Forget, Chapter 7 – Poli-Ticking Above is a photo shot I had taken from “Markets Never Forget”, listing the stock market’s (S&P500) historical returns since President John Calvin Coolidge, Jr . Since 1943, the 3rd year of all presidents have ended positive; that’s 71 years worth of historical data and trend. Well,...

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EVERYONE should Invest

Everyone who wishes to retire should invest for their future, irregardless of their jobs and status. Anyone relying on their savings for retirement are bound to experience a short-fall in their future income for 2 reasons: 1) The interest rates you get from your savings will never be able to match inflation rate. 2) If you save 10% of your salary each month for 40 years and aim to retire for 30 years, assuming the interest rate you get matches inflation rate, there is no way mathematically you will be able to draw even 10% of your last pay....

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Ethical reporting has never been more important

While the creation of the Internet has allowed information to flow more efficiently and effectively, it has also resulted in extreme volatility in the markets. An example of such is the oil prices, where its price can fluctuate more than 3% in a week due to a simple announcement of the performance of US economy. This led to the importance of information and especially the “appearance” of it. What do I mean by appearance? People form views or perceptions on every piece of information they gather and how we perceive it is different from one another. Someone’s good news...

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2 Must-Read for all New Investors

Today, I would like to recommend 2 books that I think are by far the best investment books I have read since I started investing. Warren Buffett Stock Portfolio. Warren Buffett and the Art of Stock Arbitrage Both books are by Mary Buffett and David Clark. They are easy to read and easy to understand for a new investor. Warren Buffett Stock Portfolio explains how Warren Buffett identify which companies are great and worth investing in simple layman terms – Earnings Per Share (EPS) and Growth Rates. It comes with plenty of examples as well to aid in the...

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Asset Allocation VS Investment Period

Most investment professionals would emphasize that a good asset allocation is key to great investment returns. Having a portfolio consisting of stocks, bonds, other investment assets and cash is like the safest strategy anyone of any age group can follow. Today, I wish to offer something different. I would like to say that the Time Horizon you have to invest is equally important as to what you invest in. Based on the video below by Fisher Investment, stocks tend to perform better than bonds over a long period – despite the higher volatility (price movements). If you are planning...

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Is Investing Risky?

Ever heard your parents, your grandparents, your friends or relative told you that investing is risky? Watch this short clip and understand why investment is not as risky as they say. Share it to those who tells you that investment is risky and make them all a better investor! #InvestToday...

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High Inflation Coming to US

High inflation rates will be coming to US because of the huge amount of printing by the Fed and a dysfunctioning fiscal policy. It will not be tomorrow, next year, or 5 years, but it will definitely come when the Fed is no longer able to support the economy. PS: This will be a economics lesson, and the market outlook will be at the bottom. Economics The current monetary and fiscal policy in the US (and most other countries) are dysfunctional and highly skewed towards creating inflation. Fed Fed’s duty is to control the money supply and interest rate...

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Confession of an undisciplined investor

This is a confession post of an undisciplined investor that sought to cut corners in investing. From what you already know, the market is ruthless and it only reflects your performance to the amount of work you put in. Once you are complacent and assume that you are better at beating the market, it will whip you till you beg for mercy. Being a young investor, similar to all beginners, I had beginner’s luck (sort of). I made some wise investment decisions and made a decent rate of return. While it is not fantastic, I am still proud as...

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Sticking to a strategy is the most important for an investor

While the Dow is climbing to all-time high, some of us maybe feeling annoyed with the lackluster performance of the Singapore stock market. As a comparison, the Straits Times Index is still 13.7% away from its all-time high that was in October 2007, 7 years ago. In this period of 7 years, there are numerous events and surprises. All of which leading drastic movements of stock prices, that saw the STI crashing to a low of 1594, more than 50% loss from its all-time high. This crash occurred only 4 months after the STI reached its peak. Most amateur...

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