Reflection on the financial turmoil

By: Alen For the past 1 year, the global financial market was in turmoil. Now, it is still very unstable. It started as an US problem and later the contagious effect spread to the whole world. It started long way back when US housing market was booming. The bank packaged many creative product like subprime loan. Financial institution lend to those without good credit record, package the loan … [Read more...]

Stock Markets – Predictors of the Future ?

By: musicwhiz As I was journeying on the bus and the MRT, I was thinking of how accurate the stock market is as a predictor of things to come. The market started its bear run in Oct 2007, and now Singapore is in a technical recession because of 2Q and 3Q 2008 GDP. So in a way, the stock market decline was able to "predict" the recession coming up and price it into share prices. This must be why … [Read more...]

Opinion piece by Warren Buffett

By: La Papillion With the STI coming down to 1880 and DJ showing no signs of breaking down from its fast and rapid decline southwards, there is plenty of fear in the market. Once, I had heard of people talking about stocks and shares..but now, the library is full of books on investing that nobody is interested to borrow and everyone is not looking at the share prices now. Is it the first sign … [Read more...]

Value investing versus technical trading

By: Jay Some time back there have been some debate on other blogs about whether value investing works better, or technical trading works better or turtle style works better or whatever. It is very logical to think that technicians detest value investors and vice versa. Bcos their investment philosophy is completely different. One buys stocks that are mundane, cheap, stable earnings based on … [Read more...]

Caveat emptor: A licence to cheat

Definition by Tan Kin Lian: Caveat emptor (let the buyer's beware): A licence for the financial expert to cheat the unsavvy consumers. Comment posted in my blog Dear all , Please read this article ( published in BT dated 15 Oct ) titled 'Times to make sellers beware, not just buyers'. I quote the followings : " ... Here we have essentially an insurance policy taken out by Lehman … [Read more...]

New Blog Inclusion

By: Derek Lim A new blog The Simplified Resource For Investing - Get money while staying invested has been added to my site. As the tag line suggests, the blog is heavily focus on investing especially on stocks. Though relatively new, I like the author's view in rebuffing analyst calls. Read about the author's profile here. … [Read more...]

Cosco..Another China Counter Being Beaten Down..Is It Justified?

By: SGDividends We noted the beating of Cosco today. As of now 12.30pm ...trading between a range 0.94 - 0.76.Wow. We noted that DMG gave a sell call of this counter...stating some reasons and more reasons and much more reasons..qualitatively..which is true actually. We noted also BT had a report on it with Credit Suisse saying something about drifting lower. But, let's take a step … [Read more...]

Saving mini investors

By: Level13 Currently the Hong Kong government is trying very hard to intervene and arrange for a compensation package to all minibond investors. There has been immense pressure by the Singapore minibond investors on the local authorities to step in and arrange a similar bailout. With all due respect, I personally do not think that it is a good idea for the authorities to step in. MAS, which … [Read more...]

Market will go down further (opinion)

By: Wilfred Ling My opinion is that the stock market will go down further although there is a good chance of a very strong bear rally happening soon. My reasoning is this: Governments in the world are thinking of injecting cash into banks through equity stakes. If these banks "suddenly" have new major shareholders, what would happen to the existing share price? Obviously it will plunge like a … [Read more...]

How to avoid getting killed by a Black Swan?

By: PanzerGrenadier We live in a world of black swans. In a nutshell, that is what Nassim Nicholas Taleb’s (NNT) book “The Black Swan: The Impact of the Highly Improbable” talks about. He shares with us how the world is more random and unpredictable than we think it is. What’s worse is that in the world of finance, financial institutions and hedge funds who make risky investments think that … [Read more...]

A Value Investor’s Test of Resolve

By: musicwhiz I shall type this post purely from scratch and this is based on the thoughts that I had rationalized over the last week as the stock market had taken probably the worst slide in the last 21 years (since the 1987 market crash). I intend to cover a few areas so please bear with me if the post seems haphazard, I am trying to organize my thoughts as I type and if there are some ideas … [Read more...]

New blog for investors of Credit Linked Securities

Mr. Tan Kin Lian has created a new blog to allow investors to get in touch with each other. Separate sections have been created according to distributor and products. http://creditlinkedsecurities.blogspot.com/ I believe this will be extremely helpful because now the affected parties can have a consolidated channel to voice their views. … [Read more...]

OCBC’s valuation range

By: La Papillion I learnt a little more about the person who wanted a stake in Ocbc. She wanted to pass it on to her future generations, so the time horizon can be stretched further than the 3-5 yrs that she had told me initially. As such, preference shares might not be the best option anymore. I'm looking more into OCBC because that's what she wanted. This is based on the data I posted on … [Read more...]

Confidence Crisis

By: Adrian Khiat A mortgage crisis became a credit crisis and a credit crisis turned into a confidence crisis. It was panic and a sea of red everywhere on the street. I had never seen anything like this since I joined the industry in 2003 when it was the end of the last bear market. I can see my colleagues and private banking friends in a stressful state where their panicky clients keep … [Read more...]

Global Financial Crisis – subprime loans

By: Tan Kin Lian Dear Mr Tan, Thank you for your effort in seeking justifications for innocent investors. While investigations do help, much could have been done to prevent this crisis from happening which started in the United States last year. At the onset, many financial institutions had been trying to cover up their losses for their exposure in the sub-prime credits and loans. The … [Read more...]

O financial adviser, financial adviser, wherefore art thou financial adviser?*

By: Patrick Lim *(with apologies to william shakespeare) On Thursday, I was referred to an elderly lady who is feeling totally lost at sea amidst what can be described at the perfect financial storm engulfing all the four corners of the globe. My prospective client is a retiree in her 70s who shared with me that she has been trying to reach her financial adviser for some time but alas, … [Read more...]

It’s official, Singapore slips into recession

By: Patrick Lim On Friday, the ministry of trade and industry released the latest GDP data showing our economy declined for a second straight quarter, which signaled that our nation has entered a recession for the first time in six years. Which means Singapore 'earned' the dubious distinction of being the first Asian economy to fall into a technical recession. On a seasonally adjusted … [Read more...]

Ferro Trouble

By: La Papillion Ferrochina announced very grimly news. Due to the current economic crisis, they are unable to repay part of its working capital loans amounting to about RMB 706 mil, which had become due and payable. As a result, further loan facilities and notes of about RMB 2,030 mil may potentially become due and payable. Another sum of working capital loans of RMB 2,493 mil may also become … [Read more...]

Avoiding investment scams, ponzi schemes and “quick and lucrative returns”

By: PanzerGrenadier There are sharks everywhere! Personal finance and investing is DIFFICULT. It is difficult because you have to struggle against the most powerful forces the universe has prepared for you: GREED and FEAR. When it comes to personal finance and investing, the most tricky part is to develop a certain degree of common sense towards knowing when a investment is genuine and … [Read more...]

Only deal with regulated person

By: Wilfred Ling It is quite common for people to be approach to invest in certain "too-good-to-be-true" investments. Very often, due to greed many people will invest their hard earn money into it only realising that it is a scam. MAS stand is quite clear that investors should only deal with regulated persons. Otherwise investors have no protection from the various provisions of the law … [Read more...]