Why Food Prices keep going up?

By: Adrian Khiat It was reported in newspapers and TV almost every other day that Living Expenses globally are going up in an unsustainable fashion. It is especially painful when Food is one of it because food has to be consumed no matter who and where the person lives. It will also affect anyone except those who live in the Jungle. (Ermm.. Eg, Mas Selamat will not be affected if he is … [Read more...]

Thoughts about STI

By: La Papillion While trying to find out more about the compounded returns of investing in STI ETF today, I managed to crunch some numbers for the adjusted close of STI since inception on 28th Dec, 1987 till now. The data that I used comes from Yahoo! finance. Below is the chart (linear y-axis) of STI from inception till last close, on 2nd May 2008. We can see from the STI chart that … [Read more...]

More on inflation

By: Jay In the last post, we talked about how inflation will hurt us badly. Today we shall discuss some countermeasures. So inflation is a major issue if you think hard about it. All your savings goes down the drain and you are back to square one. You think you save S$1mn for your retirement and that should be enough. But hey 30 yrs from now, S$1mn cannot even buy HDB, Bcos the value of … [Read more...]

Conflicting Views.

By: Kleer The local investing community was a buzz yesterday following this statement from Dr. Tony Tan, Deputy Chairman of the Government of Singapore Investment Corporation (GIC) that "the world may face its deepest recession in 30 years". But what I'm deeply puzzled about is this: If that really is the view of GIC, then why on earth did it make those significant investments in UBS and … [Read more...]

Market Update – (Saturday, April 19, 2008)

By: Kleer After the Dow's strong showing last night (see here), I received an sms from a trusted broker friend of mine informing me that he believes that we are almost 80% through this current crisis. His view was substantiated when I logged into Sgfunds this morning and read what Starry had to say: 1st statement posted last night: If tonight DJI closes above 12800, be ready for the … [Read more...]

The return of inflation

By: Jay Most of us never really lived through periods of high inflation, thanks to very effective central banks throughout the 80s until today. But with recent rise in commodity prices translating to higher food prices, higher raw material prices, higher property prices, higher taxi fare, higher this, that and everything else, inflation may be coming back to haunt us. And believe me it's gonna … [Read more...]

Shortages and bubbles

By: Tan Kin Lian The world is short of oil. Oil price went through the roof. This is followed by gold, commodities and food (i.e. wheat, rice, etc). Is the world suddenly so short of these commodities, when it was in adequate supply two years ago? Why is there a sudden increase in consumption or a big drop in supply? The main cause is speculation. When there is a small shortage, the … [Read more...]

Trends in Upstream Oil and Gas

By: DanielXX This is a rather broad topic and I'll choose to structure it along several issues of choice: trends in offshore, main development focus of oil companies, ownership trends. Generally, offshore oil was estimated to account for about 1/3 of the world's reserves at the start of the new millennium; this ratio would likely have grown significantly in recent years with the discovery of … [Read more...]

Singapore, India and Thailand: Next Medical Toursim Destination

By: Drizzt Ever wondered how much of an advantage our local listed medical focus companies have over US? take a look at this: We always seem to hear of Singaporeans going to Thailand for cheaper surgery but i believe that the government’s push for Medical Tourism in Singapore could yield some rather good results. Take a look at the cost for Heart Bypass. Read more... … [Read more...]

The Credit Crunch de-mystified in 2 minutes

By: Adrian Khiat Every other day, we are seeing reports on the US Subprime problem. The reports frequently occupy the whole page in the Straits Times or Business Times. Lazy readers like you and me are put off by these reports. Are you guys still confused what is happening??? I try to summaries for busy people like you using my 10 points approach. Read more.... … [Read more...]

Article: Don’t expect another bull market

By: Tan Kin Lian Dear Mr. Tan, Please give your comment on this article Don't expect another bull market Stock returns may never be the same - at least for this generation of investors. http://money.cnn.com/ REPLY The author said that for the past 20 years of the bull market, the stock market produced a return of 19% per year. He does not expect this kind of return in the … [Read more...]

PEG of Countries: Singapore looks cheap

By: Drizzt Investors who pick stocks sometimes rely on PEG ratio to determine if a company is under value. A figure of PE that is below 1.25 times of growth rate would indicate for a greater propensity to grow compare to a company’s forward valuation. So can we bring this over when looking at country? the folks at Bespoke did the leg work and here are the results. Looks like Singapore and … [Read more...]

Severe winter effect on China economy and stock

By: Alen Before the severe winter condition, China already experienced higher inflation and run away food price. Now, the winter that paralyzed certain part of the country should have impact on the economy. The direct impact of the winter are disruption of food, electricity and transport. As the snow damaged road and structure, rebuilding would cost money and the construction stock should do … [Read more...]

Don’t Try Catching a Falling Knife

Brendan believes that US is facing a recession and it will cause the global markets to fall even further. By: Brendan Lee Trying to catch a falling knife can be dangerous — very dangerous, especially when it is pointing downwards! We have recently seen figures reported for consumer confidence; home prices and purchasing manager orders are falling. In turn, retail sales are markedly down, … [Read more...]

Inflation and investment

By: Tan Kin Lian Dear Mr. Tan, Inflation is expected to increase to 5% in 2008. Interest rate remains very low, less than 2%. The stockmarket is volatile. How should we invest our money to be protected against inflation? REPLY The high rate of inflation is caused by temporary factors, i.e. the large increase in oil price and the increase in GST. I hope that it will return to a low … [Read more...]

My views on the US subprime crisis

By: DanielXX The crisis which erupted in August last year is now generating a full-blown domino effect on the "real" US economy and half a year after things have developed sufficiently for me to make an informed opinion on the state of affairs so far and how things could go from here. Firstly, a confession to make. Although my mental analysis framework was pointing to a reduction in equities … [Read more...]

Mr. Market

Another volatile week in the market. At the start of the week, the STI suffered is biggest one day fall since October 1987, plunging 6%. However at the end of the week, the STI together with the rest of the market recovered, aided by the Fed's interest rate cut and the quick approval to the stimulus package. The STI closed at 3,159.48 above the physiological 3000 point mark. Our local papers … [Read more...]

Hazy Work Day

By: Drizzt Its one of those days where you woke up at 4.30 am cause you can’t get used of sleeping early. Contrary to what many of my friends believed, I don’t check the mkts but checked some NBA scores and read some decorating sites. That hasn’t stopped me from noticing this article at Bespoke on the oversold conditions of the country. Apparently,Singapore is not too far off the trading … [Read more...]

STI Update.

By: Kleer This technical commentary on the STI was released by AM Fraser Research yesterday. Note: I do not necessarily share the view of this commentary, but it is useful to know what the key support and resistance levels are. Key support - 2610-2620 Next support - 2500 (half way mark of 2003 bottom and Oct 2006 peak) Minor resistance - 2814 (38.2% mark) Major resistance - 2915 … [Read more...]

Bear Market

By: Tan Kin Lian We are now in a severe bear market. The stockmarket around the world has dropped more than 20% from its recent peak. The drop can be 5% a day. It can drop a few days in a row. This is the work of hedge funds. When the market is weak, they sell in large volumes, causing weak holders to panic and sell their holdings. There are no buyers, so the drop is severe. Later, the hedge … [Read more...]