Author: Wealth Directions

Discounted Asset Stocks for Capital Growth & Charity

Dr Tee, Ein55 Mentor & Graduates have together organised 3 charity investment courses (REITs/Business Trusts, High Dividend stocks, and Discounted NAV stocks) in the past 1 year, donating net income of more than $50,000 to Tzu Chi 慈济 (Singapore). We hope to inspire more Ein55 Graduates to reach out the society, helping others who are in need.  More importantly, they have also learned the secrets of making money through investment. When more Ein55 Graduates are successful financially, they could also contribute back to the society to help more people in future. Here are key learning points from the recent...

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Profit Mastery Seminar is back!

Wealth Directions favorite seminar is back! We were contemplating a lot if we should organise this event and if we do what kind of topics will benefit the participants. At the end, we took the plunge because we felt there were a lot of investors asking for help trading during these muted environment. A lot were not profiting a lot from current sideways environment.  So, based those feedback and discussion with our partners, we decided to make this year’s event a little different. We want to up the game this year by going deeper in some of the trending topics...

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Wealth Directions 2016-09-23 01:19:28

Exchange Traded Fund (ETF) is getting popular among the investors, total global asset value has exceeded US$3 trillion.  ETF has the best DNA of both stocks and investment funds.  ETF is an investment fund which can be traded like stocks, having the stability of investment funds (risk diversification over a large portfolio) and flexibility of stocks (buy / sell in stock market) with minimal fund management fee. There are thousands of ETFs globally over various investment markets, eg: Stocks: SPY, STI, QQQ, RSX, XLE… Bonds: SHY, TIP, AGG… Commodities: USO, GLD, DBA… Currencies: FXA, FXB, FXC… Famous ETFs providers...

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Which is the Real Black Swan? Learn to Profit from the next Global Financial Crisis

In the ancient time, Europeans thought that swans are all white in colour until one day, black swan was found in Australia, it became a surprised news.  Black swan event is a financial term used to describe an unexpected event which later evolved into global financial crisis.  There were people and company went bankrupt during the downfall of global stock market.  There were also people who took advantage to buy good business at low price, making many times of fortune in a short time when the crisis is over. Every crisis is an opportunity. However, there are different scales...

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Top 10 Singapore REITs for Passive Income and Capital Growth

There are total of 30 REITs in Singapore, a popular investment option for retirement through passive income. By law, 90% of disposable income from REITs must be redistributed back to shareholders through dividends.  However, not all the REITs are profitable, an investor could lose money if choosing the wrong one, eg. pursuing the highest yield REIT.  REIT is an integrated investment between stock market and property market, knowledge of both markets are required to be successful. In general, a good REIT should have strong fundamentals and DPU (Distribution per Unit) should grow over the time.  At the same time,...

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Top 10 Property Stocks – Sim Lian & Others

Congratulations to Ein55 Graduates who have taken action on Sim Lian when it was discussed in coaching recently, now it has become another low-optimism value stock under acquisition. Top 10 property giant stocks could be the next target of big funds, let’s learn how to find more. Singapore property market becomes bearish over the past 3 years after 7 rounds of cooling measures by government.  As a result, Singapore property stocks become more valuable with stagnant stock price and high property asset value.  There are many property counters in Singapore with share price below the net asset value (NAV),...

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How to Capture Falling Knife Safely for Stocks in Crisis?

Every crisis is an opportunity.  We have learned to be greedy when others are fearful.  However, not everyone is mentally prepared to buy low and sell high following one’s personality.  When a business is in crisis, the stock price is like a falling knife, one could get hurt when enters too early, buy low and may get lower, emotionally affected with the endless falling prices. For example, over the last 2 years of crude oil crisis, stock prices of global oil & gas stocks are significantly corrected. Singapore oil & gas stock index is at 9% optimism (see chart...

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美国牛市顶部之投资策略

因为理想的就业数据把美国股市再次推到这七年牛市的顶端,有机会在接下来的日子破新高而继续往上走。那是否代表牛市将继续?是的,指数将继续保持牛市向上,但不代表每一支股票都上涨。相反的很多股票和一些主要股市(见下图)已经在熊巿的道路上了,尤其是很多新加坡的股票。这就是为什么当大盘(尤其是美国股票指数)在将来确定熊市后,我们都不愿意或不捨得止损。因为我们手中的股票都已经跌到你不敢相信的价位。 亚洲股市指数 美国和欧洲股市指数 为了不再次在股災来到之前束手无策,我们应该在美国牛市的顶端考虑接下来应该调整投资策略以面对将于未来可能发生的股災。可能你不觉得会有股災,但是在央行的货币政策造成资金超发,债务高企,低利率与负利率,经济停滞不前,大多数人都无能力或不愿意消费而造成低通胀的环境。加上英国与欧盟的关系和美国将...

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Did You Profit From BREXIT?

  23rd June 2016 went down in history as Britain voted to be excluded from the EU. Same as the majority of people, I did not expected this to happen. However, more importantly, as an investor, I benefited from this news.     In my previous article, I shared about using the straddle strategy on GLD to potentially benefit from the movements of this counter. You may read the article HERE In summary, GLD was trading at $123.68 on 15 Jun 2016. The risk-reward analysis were as follows On 24th June 2016, a day after the BREXIT referendum, the...

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YoTa See My Trade results for June are in!

Boy! What a month! We knew June will be an exciting month due to “Brexit” and it did not disappoint. For those who have been following YoTa’s trades, you will know that YoTa made a killing before and after the Brexit day. One of the best performance was executed on 24th June with 34% ROI on a single trade! That result is amazing. Due to the expected volatility, YoTa took advantage of it and executed a total of 46 trades last month. That is almost twice the volume of a normal month. Not only that, his win rate jumped...

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投资股票的乐趣

我的学生觉得我买卖股票上瘾了,因为我出国旅行只要能上网我都有可能买卖股票。但我所花在买卖股票时间不多,因为我不是每时每刻都在盯着股票的波动。我在忙其他的工作或在进行其他的活动时,我是可以不理会股票的涨与跌。我有我的方法知道我要买的股票已经跌至我想买的价位,或股票己经涨到我想卖的价位。即使我手上有70多支我在关注的股票。我花更多的时间在找寻更值得我長期关注和投资的股票,阅读报告以判断我手中的股票是否应该继续值得投资,思索以更好的策略和有限的资金投入到不同的股票,等等……...

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The benefits of Options as compared to Stocks for long term investors

It is no secret that Options loses value over time. So is it viable to buy it for long term appreciation of a stock? Let compare stocks vs options using a real life example, MSFT. On 31st May 2015, MSFT was trading at $46.86. Let’s assume that we are optimistic on this counter over the next 12 months. One way is to buy 100 shares of MSFT for $4686. The alternative way is to buy a Strike 30 CALL options contract expiring on 21st Jan 2017. And from the diagram below, we could see that the Options is worth...

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How to Gamble Safely with Casino Stocks?

As we know, casino has unfair advantage of over 51% chances for all the games, therefore even a gambler has a 49% winning rate, over a long time with many times of gambling, the survival rate could be very low.  However, in the world of stock market, we could reverse the situation, playing the role as casino with unfair advantage on us, if we know how to position the right strategy, aligning with our personalities. Genting Singapore (SGX: G13) has suffered huge correction in share price to about 1/3 of the peak price.  In the past few years, earning...

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How to Pay $50 to Exchange for $100 in Hongkong Land?

We could apply discounted asset strategy to buy good business at undervalue price.  One simple method is to buy strong property stocks with low Price-to-Book ratio (share price divided by net asset value).  Hongkong Land (H78.SI) is a property stock listed in Singapore with commercial properties in Hong Kong, Singapore and China.  Currently Price-to-Book ratio is exactly 0.5, at its historical low (see chart below), owing to falling share price and consistent growing net asset value.  If an investor owns Hongkong Land at current share price (about US$6), it is as good as owning a portion of Hongkong Land...

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