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...]

The Great Singapore Sale.

By: Kleer Lately, I've been asked by many people whether it is a good time to buy stocks now, and if so, which stocks would be worth buying. But before I go into that, I feel that I should state this disclaimer: The sub-prime crisis currently faced by the American economy is very, very real, and so is the threat that it could potentially send the U.S. into a recession, and the rest of the … [Read more...]

Free Cash Flow Yield or FCF

By: Jay One advanced but quite useful financial ratio that has not been discussed on this blog is the Free Cash Flow Yield. This no. tries to determine how much return can an investor expect after the company has made its money and invested what it needs for future operations. It also gives an indication of how much the dividend yield could be. This ratio is not called an advanced ratio for … [Read more...]

How to create a budget plan in 10 easy steps

By: Drizzt Before you can think about investing or buying insurance, you need to think about funding for these 2 items in the long run. Lets just say that buying a whole life policy is not a 1 year 2 year affair. You will be paying for almost 20 years to probably when you are 65 years old (And it can get even longer then that!) To grasp you can commit long term cash to such items, you will … [Read more...]

Detailed fengshui analysis for the Earth Rat year

By: La Papillion My special guest blogger, skyalps, wrote this summary of the fengshui analysis by Raymond Lo for the year 2008. Thanks pal, for the great summary on what to expect. Do your own analysis and research before committing your money, as always. Personally, I found the talk quite interesting as I had little prior knowledge of Fengshui and Chinese Astrology. However, I noted that … [Read more...]

A Turbulent Week

There has been only one direction for the market this week and that is down. The dreaded 'R' word has been the topic of debate and some investors believed that the US is already in a Recession. Our local bloggers have been lying idle either. They have been busy posting various reports and their own views of the current situation. (Click on the title for the full post.) By: Alen Stock … [Read more...]

Market Update.

By: Kleer These articles were published in the Straits Times today: IMF warns subprime crisis losses 'may be higher' The United States subprime mortgage crisis will likely produce deeper problems than expected because not all market players have 'come out clean' about their losses, the International Monetary Fund said. 'Some analytical work modelled on conservative assumptions suggests … [Read more...]

On Bonvest

By: Drizzt I mentioned that during this correction, some of these stocks that you like have come down to rather reasonable valuations. Bonvest could be one of them. I do like Bonvest when it is below $1, much because of its diversified business of Food,Industrial, Hotel and Property. A check shows that the last quarter has edge decent revenues and profits. The more important question is … [Read more...]

The Oprah Show

By: Patrick Lim Just caught the Oprah show - "Sick in America, it can happen to u" on the hallmark channel which was telecast from 10 to 11 pm. One of the guests for tonight's episode is a celebrity film-maker, Mr Michael Moore, who gain fame for his documentary, Fahrenheit 9/11. Tonight's show highlights his latest piece, sicko which is an investigation of the American health care … [Read more...]

Means Testing

By: Tan Kin Lian Mr. Tan, What are your views about means-testing? REPLY It is a lot of work, all lot of uncertainty, for quite negligble savings. The Minister for Health said that the subsidy will be reduced from 80% to 65%. The savings to the government is only 15%. Most people who uses the C wards are likely to be the older and poorer people. Those who are affluent are most … [Read more...]

Musicwhiz – Mid-January 2008 Portfolio Summary and Review

By: musicwhiz It has been a rather turbulent half-month from January 2, 2008 till today, with more sub-prime worries plaguing market sentiment and casting doubts on the ability of the USA to stem off a recession. With recession fears looming, the market has been sold down relentlessly by fund managers and house traders who are unwilling to take long-term positions. Of course, the selling of … [Read more...]

Market Update.

By: Kleer This weekly commentary was compiled by DBS Vickers this morning: Stay cautious this week, as the market is likely to continue its downward bias. The play on recent IPO listings has waned while S-chips could suffer more downside amid concerns about margin pressures as investors unwind. The impact of the credit crisis on the corporate earnings of US financial companies will be … [Read more...]

Book reflections on “The little book of Common Sense Investing” by John C. Bogle

By: La Papillion Just finished reading “The little book of Common Sense Investing” by John C. Bogle, founder of Vanguard Mutual fund group. I think this book should be read together with Dr. William Bernstein’s The four pillars of Investing and Nassim Taleb’s Fooled by Randomness. I really recommend the little book series for everyone – it’s so much stuffed condensed into a 8 cm by 10cm by 2 … [Read more...]

JEL Corp – Accounting Fraud, Manipulations and Misdemeanours

By: musicwhiz The latest scandal to hit the stock market belongs to JEL Corp, which was suspended in September 2007 following news that SGX suspected something was wrong with their reporting and financials. The CAD were called in and KPMG was appointed as the independent forensic auditor to investigate into the affairs of the company (the usual procedure). Needless to say, SGX had to suspend … [Read more...]

How do we invest for financial freedom?

By: PanzerGrenadier The straw poll that I did yesterday elicited 8 votes and it appears that the majority (63%) felt that "Don't know how to invest" is their toughest challenge in attaining financial freedom. While this poll is not statistically representative since the sample size doesn't even hit 30 for central limit theorem to kick in, it tells me what you would like to know more in our … [Read more...]

STI Update.

By: Kleer Compiled by OCBC Research on 9 January 2008. Will 3,300 hold? We had forecasted in our 28 Nov report that the rebound will wane out as it approached the 3,650 level, which has unfolded as per our forecast. The STI has failed to deliver a sustainable rally over the last 3 months since it rebounded off the 3,300 level in Mid-Nov 07. It tested this support level once in Mid-Dec … [Read more...]

Fundamental Trends To Watch For 2008

By: DanielXX Finally got around to writing this article. I wrote one last year (see link) and it served well as a guide for myself over the course of the year. In the context of the volatility and some say possible recession looming in 2008, it is useful to note that there will be bull sectors during any part of the market cycle. For example, even in the stagflation years of the 1970s, not … [Read more...]

Charges under a investment linked policy

By: Tan Kin Lian Dear Mr. Tan, I am confused about the many charges under an investment-linked policy. The insurance agent does not explain them clearly to me. I am now stuck with these high charges. Can I get out of them? REPLY It is better to buy a low cost Term insurance, to provide the life insurance protection. You should invest in a unit trust or an investment fund with low … [Read more...]

New Revamped STI Index

By: Derek Lim The new revamped STI index will be launched tomorrow. The new index will be slimed down to 30 stocks. Some notable companies that have been removed include Creative Technology, Venture Corp and Chartered Semiconductor, either for failing to meet the minimum market cap requirement or because their shares were not sufficiently liquid over the past year. It comes at no surprise as … [Read more...]