SGX: New Bid Size on Monday 24.12.07

By: La Papillion Just a reminder that on Monday, the new bid size system will come in place. I'm still wondering what kind of impact it will do to traders here. Ccloh from cna forum had analyzed it very nicely, so I'd like to share it here: Advantages ------------- 1. for less than $3 stocks, the bid size is as usual but good thing is now you can queue 10-bid lower or higher to buy or … [Read more...]

Is there any reason for the fall in high yielding dividend counters?

By: Drizzt I know alot of folks are fans of high yielding stocks and are heavily vested in it. If you have notice recently, alot of these high yielders are falling like flies. What happens in such a situation? the yield gets more attractive. some good examples are MIIF, Allco REIT, Cambridge REIT, Babcock & Brown. So do they make a good buy now? I’m still investigating the … [Read more...]

Big writeoffs for sub-prime losses

By: Tan Kin Lian Mr Tan, Why are there so much writeoff for bad loans by the big American banks and brokers? I thought that they package the products to sell to other investors. It seems that they are stuck with a lot of these products in their own funds. Surely, they know the risk and the defaults with the sub-prime mortgages? REPLY In a large institution, there are many layers of … [Read more...]

Stagflation is here

By: Brendan Lee When I was studying economics during my university days, I learned that the worst economics scenario is not recession, but its stagflation. In a normal recession situation, inflation falls and unemployment rate rises. In a stagflation situation, inflation rises, unemployment also rises. When the economy is facing recession, the government can implement expansionary monetary … [Read more...]

The Efficient Market Revisited

By: Jay There has been a lot of debate since the 1950s whether markets are efficient or not. Btw, if you are asking what the heck is an Efficient Market, you can read this posts first. Label: Modern Portfolio Theory Ok Efficient Market. Essentially, some academics came out with this theory that nobody can earn a superior return than the market return (ie average investment return) over … [Read more...]

STI up another 1.24%

By: La Papillion Dow was still up last night and the party goes on. STI went up another 43 pts (1.24%) to close at 3521 with a volume of almost 2 billion. All the biggies moved up - SGX, DBS, Cosco...could it be that funds are buying up now to window dress their portfolio for the next year? Possibility is there. A lot of funny stuff happened towards market close. Sudden whack up and whack … [Read more...]

Inflation

By: Larry Haverkamp (Dr Money) What you can do about ... OH no! Inflation is coming. And lots of it. Check out the trend: Inflation in 2005 was 0.5 per cent. It doubled to 1 per cent in 2006. This year, it will be about 2 per cent. Last month, the Government forecast 2008 inflation to be 2 to 3 per cent. Now, the official forecast is 3.5 to 4.5 per cent. What is going on? We haven't … [Read more...]

Sovereign Wealth Funds to the rescue?

By: Drizzt In the midst of the current financial turmoil, how do I see equities in the 2-5 year horizon? While most would bet that the Emerging Markets will do better than the developed markets of US and Europe, I wouldn’t be so sure on this. Sovereign funds, for example the likes of Temasek, have been starting to materialise for many countries. The government of these countries typically … [Read more...]

What a year!

By: Wilfred Ling Had a few conversations with my clients who took up investment this year and all of them had the same complain: why their returns either just broke even or had even slight losses? I did some computation and this is what I found: I computed the return of the MSCI AC World Free Net in SGD terms. In this computation I calculated the return as at 23 Nov 2007 if an hypothetical … [Read more...]

Long term investors now short-term speculator trader

By: Wilfred Ling With the recent extreme market volatility, I had been receiving a number of calls from clients with regard to their portfolio. Although everybody knows that investing is long-term, but it seems everybody has forgotten about that when market is down. With the recent market downturn, it seems everybody has turned short-term speculative trader overnight. Some demanded whether … [Read more...]

Black Monday

By: Derek Lim As anticipated, Singapore shares plunged 2.81% or 105.34 points. I'm not panicking as I have already liquidated most of my stocks. In fact, I'm looking to buy more; I'm currently looking at companies who will be posting good 3Q results and giving out dividends. Several reports will be out this week which will determine the market outlook. In US, existing and new home sales will … [Read more...]

Sub-prime issue again

By: Derek Lim STI together with all the entire region tumbled today on worries about the sub-prime situation in the US. However, this problem has been around for some time now and I'm not too worried. My biggest concern is not in the US but in China. We have all been hearing about the increasing number of Chinese people opening trading accounts and splurging their life savings in the stock … [Read more...]