Author: The Fifth Person

How to Cope With Higher Inflation and Falling Wages in Singapore

2014 was a year of mild deflation for Singapore but wages slid at a faster rate Oil has made a bottom at $45 in January 2015 and it is raising towards $58 and beyond, signalling the start of higher oil prices and inflation Two-pronged investment approach as seen in Ezion and SBS Transit examples below Year of Mild Deflation in 2014 It is a well known fact that Singapore is the most expensive city in the world to live in. The recent strong Singapore Dollar has brought us to the number 1 spot in the world. You might not know...

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Rising Interest Rates and How It Will Affect REITs in Singapore

Events that happen in the United States may seem far away and disconnected from our daily lives. However while the average Singaporean can safely ignore President Obama’s State of the Union Address to Congress on 20 January 2015, they should pay some attention to the Chair of the Federal Reserve, Janet Yellen. This might appear counterintuitive given that Obama is the most powerful person on Earth and has more media exposure. However this article will show why we should pay more attention the Federal Open Market Committee, more commonly referred to FOMC. The FOMC is the main monetary policymaking...

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The Pros & Cons of Investing in Commodities

A commodity is a basic good that can be bought and sold. The purchase and sale of commodities is usually carried out through futures contracts on a commodities exchange. A commodity has no or hardly any differentiation – one ounce of gold is the same as any other ounce of gold. Examples of commodities include gold, silver, iron ore, copper, wheat, rice, coffee beans, sugar, salt, etc.  Soft commodities are goods that are grown, while hard commodities are extracted from mining. Energy commodities include crude oil, coal, natural gas, electricity, etc. The Pros Exposure to different growth opportunities. A...

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4 Reasons Why Spinoffs Outperform the Market Index

In 1993, Patrick J. Cusatis, James A. Miles and J. Randall Woolridge did a research study on the stock performance of spinoff companies from 1963 to 1988. From the research, they found that spinoffs outperformed the S&P 500 by about 10% per year in the first three years of their independence. The study also found that parent companies of spinoffs also outperformed the index by more than 6% per year for the same three years. A 1999 McKinsey study researched the performance of spinoffs between 1988 and 1998 and showed that spinoffs gave shareholders 27% annualized returns over two...

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The Pros & Cons of Investing in Real Estate

Real estate is property consisting of land or buildings. Real estate is divided into three broad categories – residential, commercial, and industrial. For many people, real estate is the asset class they are most familiar with as virtually everyone is aware of the houses, condominiums, malls, shops, office buildings, factories, etc. we see in everyday life. Likewise, many people invest in real estate when they buy their first home. The Pros Stable returns. Real estate prices worldwide have generally trended upwards, giving investors decent, stable returns over the years (with the exception of housing busts). The US house price...

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