Author: Xeolyenomics | The Game of Economics

Market Correction! 3 Sectors You Can Buy Into

The recent market correction sent the news media into a frenzy, declaring that the stock market has “collapsed” or “crashed”. The truth is that the stock market simply has gone way above its valuation and a good 10% correction will do some good to trip the fats down. Prior to this market cycle, it is normal to have a 10% correction on an annual basis, and it is a combination of easy money and low inflation that lead to years such as 2017 which we did not see a single correction despite a tightening monetary environment. However, is it...

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I Met My Girlfriend Through Kickstarter and She Blew Up My Campaign.

After years of fruitless sessions of speed dating and empty conversations with Tinder, I kinda of gave up on dating for a while. My personal life also underwent major changes which makes it almost impossible for me to focus on dating. First and foremost, my grandma was diagnosis with vascular dementia and she was transformed from a sweet lady, into an irrational angry person, constantly cursing in 4 different languages and accusing me and my dad sleeping and impregnating my helper. None of this is true of course as her delusions were the result of dementia play tricks on her mind....

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5 Financial Lessons from Financial Boardgame: Debtzilla

Debtzilla: The Board Game is a superhero co-operative board game that puts players in the role of a secret identity superhero, who has to manage his finances as a common salaryman during the day, and combating villains at night. At the end of the game, the players have to defeat Debtzilla as the final boss in order to win the game. The game is making use of the superhero theme to bring out essential financial lessons and here are 5 of the important ones: 1) Savings is Important Unlike Robert Kiyosaki’s Cashflow game which requires players to make use of a...

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Tapering? Split-up of Spain? Events in Europe and their Impact

Europe, the continent that has rocked the global financial markets with debt crisis and a Brexit has been relatively quiet on the financial front in the past few months. However, there are 2 significant significant developments that warrant the attention of investors. Here are some of the newsworthy events which we should watch out for: Implications of EU tapering of QE The EU central bank initiated their Quantitative Easing (QE) program in 2009 and since than, the EU economy has recovered sufficiently to warrant the EU central bank to start tapering back on the QE program. The tapering involves...

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Implications of Trump Tax Reforms on Your Investment

The failure of repealing and reforming Obamacare has left the Trump administration without any legislative victory. Both the Trump administration and the Republican controlled government are eager to pass a tax reform before the end of the year. The key points of the tax reforms will have the following effects: One-time Low Repatriation Tax Rate for Corporate Profits Held Overseas Big cash rich MNC such as Google and Apple are holding most of their cash outside of USA due to the high tax expenses they will need to pay if the money is repatriated back. This one time “Tax Holiday”...

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4 Reasons Why USD is Weakening and Possible Future Trends

Shortly after the US Presidential elections, the USD shot up and hitting a multi-year high, with investors expecting that a newly inaugurated President Trump will be able to revitalize the US economy through tax cut, infrastructure building and trade sanctions which all will assist in the strengthening of the USD. 8 months later, the USD has reached a 2 year low and has fallen rapidly by 6% against SGD within this short period of time. There are 4 main reasons behind this sharp decline: Reason 1: Chaos in Trump Administration The rush of scandals that engulf the Trump administration...

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Debtzilla – Game Design Diary Part II: Money Mechanics

After 1 year of design work and 13 design blueprints later, Debtzilla the board game is finally born. The biggest challenge of designing Debtzilla is the challenge of incorporating various important money concepts such as income statement and compound interest without resorting to players filling out a real balance sheet and whipping out their calculators. The other challenge is to create a game that flows, easy to learn, builds tension gradually to a climax and engaging the players at an intense level making them feel that time flies by quickly. A Logical Timeline In Debtzilla, a daily routine is...

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Will Central Bank Tightening Derail the Bull Market?

The Trump bull rally that has been raging in the past few months have come to a halt in June. Let us take a look at some of the significant events for the month and its complication. Mess at UK Election The UK Prime Minister Theresa May called for an election in a bid to strengthen her coalition going into the Brexit talks with the European Union. Her lead in polls have been derailed by a series of campaign communication errors and terrorist attacks, leading to the Conservative party in losing their parliamentary majority. Results:  The stock market barely blinked...

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So You Want to Be an Asian Board Game Designer?

When Capital Gains Studio first entered into the tabletop scene in Singapore, many of the previous generation of tabletop game publishers have thrown in the towel and left the scene all together, along with their industry knowledge and competency.  With no established publishers in the region, game designers often have to double up as game publishers and we can totally understand why our predecessors left as the board game publishing environment in this part of the world. Making tabletop games in this part of the world is harsh and unforgiving. We started with wanting to just design a simple...

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Missing out on the Emerging Market Rally? Think Twice before jumping on

China is Recovering! Emerging Market Equities Soars! You may have read similar headlines in the past few weeks and may be tempted to jump onto the Emerging Market bandwagon to reap the returns. Afterall, Emerging Market equities have soared 18% this year and the trend seems to be unstoppable. Popular news channel are optimistic about the China reforms and Asia is where all the growth is after all. For those market watcher, you will get a feeling of deja vu. The reason behind, this trend of Emerging Market out-performance seems to be the recurring pattern for the past few...

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Why Commodities is in a Sweet Spot to Invest in

The idea of business cycle investing is simple. Allocate more of your resource based on the different stages of the economy cycle. Invest in stock and property during the recession and early recovery of an economic cycle. Invest in commodities and financial related stock during the growth to stagnancy stage of the economic cycle as inflation and interest rates start to accelerate. The last stage whereby the economy swings back into recession is the time to hold on to cash and bonds. This simplistic assumption held true for the past century when United States is the sole super economic...

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How to Improve the Risk Return of your Bond Portfolio

A well balanced investment portfolio typically has a bond component which will help to smooth out the volatility of the portfolio and gives investors some safe buffer to take advantage of any market correction or crash when it occurs, without needing the investor to top up the investment portfolio with cash. As the global economies move towards the more mature end of the economic cycle, it is often prudent to lock in the profits made during the better times and increase the allocation towards bonds.  However, in the current rising interest rate environment, the performance of bonds will be...

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March: The Month of Financial & Political Minefields

One and a half month after the inauguration of Donald Trump as the President of United States of America, the world is still trying to figure out his stand in foreign affairs. The immediate concern of the financial market right now, is to see whether President Trump is able to pull off his promise of lowering the US tax rate and increasing government spending at the same time. With US budget discussion in full force, the financial markets are scrutinizing his every single move to see how the debate will lead to. It is the promise of a Trump...

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The 2017 Fengshui Guide to the Stock Market

As we ease into the year of the Rooster, experts all over the year put in a piece of their opinion how the market will fare. As a part of our annual tradition, we shall turn to the world of metaphysics and Fengshui to give us an insight how 2017 will be. However, before that, let us take a look to see how Fengshui has been accurate in predicting 2016: The year of the unpredictable fire monkey (Yeah Donald Trump and Brexit!) From the looks of the two graphs, looks like Fengshui got most of the predictions wrong. But...

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Debtzilla – Game Design Diary Part I: Theme

Right after the launch of Wongamania: Banana Economy, I started to brainstorm on a new game which can portray another aspect of the world of finance. There has been requests from different sectors on different subjects. Some wanted me to create value stock investment game, some wanted me to focus on commodity and there are ideas on using a game to teach people about real estate investing. However, as we reach out to more people, it became apparent that debt is a common topic among the man on the streets. There has been rising cases of young people getting into...

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