Wednesday, July 15, 2009

My Paper: My Money [How to Diversify and conquer]

In today 15th July My paper, my money got this article.


Short summary:

qns: How can one diversify investment?
ans: 1. combine assets like stocks(growth and value options) with bonds.
2. Invest globally
3. Rebalance/evaluate portfolio perf regularly

qns: What impat does a divesified portfolio have on returns
ans: bonds often do well when stocks do poor

qns: what should the portfolio for a 30year old professional look like ?
ans: more equities and stocks when entering 40, include bonds.

Monday, July 13, 2009

Invest[property special] 2:

2nd article that caught my eye!

It teaches one to consider the interest rates and lock in period etc when consider a mortage package.

Francis Chan shares his story of when buying his first house... he is shocked when he received a letter from bank to say that '' due to the flutuaction of interest rate environment, his monthly installment would have to be increased.'' This is when he haven even unpack his stuff in the new house.

So... some important information in the article


  1. DBS

Sibor fixed rate (Sibor stands for Singapore Interbank Offered Rate)

Year 1- 1.99% Year 2-1.99% Year 3-1.99%

Thereafter 3- or 12-mths Sibor +1.75%


2. UOB'

Floating rate

Year 1- 3.5% Year 2 - 3.75%

Thereafter 4%



Floating rate

Year 1- 1.6% Year 2 - 1.6% Year 3-1.6%

There after 3.75%



3year fixed rate

Year 1-1.6% Year 2 -2.2% Year 3-2.9%

Thereafter 3.75%



2 year fixed rate

Year 1-1.5% Year 2- 2.5%

Thereafter 3-mth sibor +1.25%


Fixed rate means protected against the fluctuation of the market interest rate... Its good, thus you can see, no bank provide fixed rate throughout lo...

then the author also mentioned about locked in period. It refer to how long you are tied to the bank and allow it to penalise you if you decide to redeem your loan early.

Haha.. first time home owner, good luck!(haha, including me too!)

Invest[property special] 1: Current property RUN

After reading the Invest pages in Strait times 12th July, I am drawn to 2 articles. The first one, is the headline, the front page!

It starts with...

''Recession? What Recession? The residential property market is on a roll with owner-occupiers, speculators and investors...''

"Demand shot through the roof and prices are rising.'''

So, this article is about the increase in demand for private apartment...despite the so call recession, the property market is doing well

Property Correspondent Joyce Teo came out with some reasons. I shall summarise it here.

1. Suburban boom

As people missed the bull run after 2007, many are catching it now, having the thoughts that its at the bottom of the market.

The Caspian, 99year leasehold project in Jurong West sold 300 units over 3days. Then followed by other project. Thus, believe this spark the boom off.

2. Interest absorption.

Paying 20% of the purchase, and you will be the owner of the apartment!

More attractive, the Interest Absorption Scheme(IAS), requires you to take up a bank loan, but the developers absorbs the interest payments until the project has been finished!

3. Small is beautiful

Projects that offer smaller, affordable units

4. VIP previews

When one call to register interest, they will be invited to a special preview! Being among the first to buy and choose.. plus, preview price lower than launch one!

5. Where are the price now

Price have dropped but experts are saying it may not last long...

Being in Singapore, one very good news is that we are not very affected by the recession! I think most Singaporeans dont even care what period is this. As recently GSS(Great Singapore Sale), Mastercards purchases shot to highest among recent years. Hopefully, these are not unnecessary spending just due to the GSS.

Thus, I not very suprise by the article above . Also, for investors, it might really be a good time to go into property market! XD Before the demand shot so high and affect the pricing again.

Propery investment need be cautious as it involve large sum of money. Even if now is the best time, the bottom of the market, we need to consider some factors before jumping into it.

Factors to consider include(after study the market):

1. Location

2. Loans available

3. Interest rate

4. Ability to support the apartment if unable to resell

Cost to consider when buying a property:

-Mortage payment(<40%>

-Legal cost(<1.5%>

-Stamp duty (0.7% for first $180000 1.4% on next etc)

-Valuation report

-Insurance premium(life+fire)

-Property tax(ard 4% if owner occupied, 10% if rented)

-Maintanence and Operating expenses

People who are going to be first time home owner may be interested in the article I going to intro next:)

Wednesday, July 8, 2009

MY PAPER: The Bonds that Binds

In my paper, 8th July Wed.
Under My Money,
The Bonds that Binds, from Mr Koh. Brought by HSBC insurance.
It encourage people to invest in bonds, a loan statement from a company or government sector.
OF course, it promoting the Asian Bonds.

Reason #1
Greater variety of bonds available. Asian bonds form the 4th largest bond market. (1st is US, then Europe and Japan)

Reason #2
Higher long term growth
Asian economies are expected to have higher long term growth

Reason #3
Higher and steadier returns
Higher yields compared to Singapore dollar based deposits.

Bonds in my opinion dont really gives a high interest or high yield. In Singapore its more of a steady kind of investment. OF course, its higher than the 0.125% bank give which is eaten up by inflation...

Tuesday, July 7, 2009

Asian investment fair! TAKE NOTE investors!!

Asian Investment fair!
There is like 50 seminars held over 2days!

FOR FREE!!!!!!!!!!
Worth to go learn and listen to professionals point of views on investment..
The companies involved are SGX, standard chartered, moneysense, online trading academy, citigroup etc etc etc...
There are some seminars that held at the same time, so must really choose the one you more interested in.
For me, I looking forward to... (for the moment)
Day 1
`1. All you need to know about contra trading. BY DAVID GRANT CEO of city index asia(rmb? the one i posted on earlier...)
2. Investing with unit trusts and ETFs
3. Outlook on Singapore economy by Mr Kit Wei Zheng, Citibank
Day 2 planning for young families by Moneysense
2.Keeping financial fit...
3. Asset allocation by Mr Roger Tan, VP of SIAS research
etc etc
actually quite a lot of things seem quite vague, dunno what they going to talk about for day 2.. so make me a little curious...
Investors should go I think... no harm learning more..... though I think some will sure sell their products as the seminar goes..
Its first come first serve basis...think will attract quite a no. of ppl

Sunday, July 5, 2009

Straits Time: Invest

Bringing attention to Invest from The Sunday Times 5th July.

Haha... it says ' Where to park your hard earned cash'' Known fact that saving it all in bank may not be the best idea, with interest rate close to zilch.

The article suggested a few ways. 1) Saving and fixed deposits 2) Money market fund 3)cooperatives 4) Singapore government securities *SGS 5) structured deposits 6) endownment plans with fixed returns

What I think about the above suggestion is that generally they are rather low risk investment. Due to lehman brother, I think many think twice before investing. However, the inflation rate never change. One will always lose $$ with NOT INVESTING.

The low risk investments are really rather good in the market now.. where everyone is a little fear.. yet want to invest.. these may be the ways one can look out for


Another article that catch my attention is developers rush to catch buying wave.
(talking about the more condo launches are due this month but market watchers say the price recovery will not last)

more details..go read up oh

Online trading

These days online trading account is getting super common, perhaps, people like to stay at home to do the study of trading. For me, I prefer online trading account due to the charts available for me to study easily. The flexibility in timing etc is also a very important advantage.

However, we do need to be careful about online trading. As I am wondering what to note for online trading, I found this rather useful. The below excerpt is I adapted one... Hope is useful for all...

This is adapted from

Guidance to Investors Regarding Stock Volatility and On-line Trading
On-Line Trading
With a few keystrokes and a click of the mouse, investors today can buy or sell stocks through on-line trading accounts with the same ease as they search the Internet or play computer games. Investors’ on-line access has grown dramatically in the last several years, with more than 100 brokerage firms now offering on-line trading services.

Investors need to bear in mind that while the mechanics of on-line trading are relatively easy—investing is not. It is important not to confuse the procedure for entering an order—which can be executed with the push of a button—with making thoughtful investment decisions. Investors should exercise the same degree of care when trading on-line that they do when making any other investment decision.

In recent months, there has been a marked increase in price volatility and volume in many stocks, particularly of companies that sell products or services via the Internet (Internet issuers). Below is a brief discussion of what investors should look for in terms of firms’ practices under such conditions. Also, please see
Notice to Members 99-11, which suggests disclosures firms should make to retail customers to educate them about the risks of price and volume volatility, and Notice to Members 99-12, which provides FINRA members with guidance concerning the operation of their order execution systems and procedures during extreme market conditions.

During these periods of increased price volatility and record trading volume, customers eager to trade Internet stocks have flooded their brokers with large numbers of orders, leading to large order imbalances, system queues, and backlogs. Investors should be aware that, during these extreme market conditions, many firms have implemented procedures that are designed to preserve the continuous execution of customers’ orders while also decreasing the exposure of the firm to extraordinary market risk. For example, some Market Maker firms temporarily discontinued normal automatic order executions and handled orders manually. Firms also reduced their size guarantees on individual stocks or groups of stocks (i.e., stocks of Internet issuers) on a going-forward basis.

What Investors Should Ask Their Brokers
It is important that investors educate themselves about how securities transactions are executed, particularly during times of volatile prices and high volume. Before opening an online account or placing the first trade, investors should ask on-line firms a number of questions so they can make appropriate investment decisions.

High volumes of trading at the market opening or intra-day may cause delays in execution and executions at prices significantly away from the market price quoted at the time the order was entered. Investors should ask firms to explain how order executions are handled by Market Makers, particularly when the market is volatile. It is particularly important for online investors to make this inquiry, since most have come to expect quick executions at prices at or near the quotes displayed on their computer screens.

Types of Orders
Investors should ask the firm they are working with to explain in detail the difference between market and limit orders and the benefits and risks of each. In particular, firms are required to execute a market order fully and promptly without regard to price. In some market conditions, execution may be at a price significantly different from the current quoted price of that security. Limit orders will be executed only at a specified price or better. Customers using limit orders receive price protection, but there is the possibility that the order will not be executed.

As a related matter, if you are investing in initial public offerings trading in the secondary market, particularly those that trade at a much higher price than their offering price, or in "hot stocks" (those that have recently traded for a period of time under what is known as "fast market conditions," in which the price of the security changes so quickly that quotes do not keep pace with the trading price of the stock), you should be aware that your risk of receiving an execution substantially away from the market price at the time you place your order may be significantly reduced if you place a limit order.

You should be aware that you may suffer market losses during periods of volatility in the price and volume of a particular stock if there are delays in effecting buy or sell orders. You may have difficulty executing your trades due to limitations on system capacity. In addition, if you are trading on-line, you may have difficulty accessing your account due to high Internet traffic. Customers trading through brokers at full-service or discount brokerage firms or through representatives of on-line firms when on-line trading has been disabled or is not available may have difficulty reaching account representatives on the telephone during periods of high volume. You should ask your firm to explain its procedures for responding to these access issues.

Communications with the Public
Investors may see a firm using advertisements or sales literature to make claims about the speed and reliability of their trading services. These communications with the public must not exaggerate the broker-dealer's capabilities or omit material information about the risks of trading and the possibilities of delayed executions. Moreover, broker-dealers should have the systems capacity to support any claims they make about their trading services. Misrepresentations or omissions of material facts in public communications violate NASD rules. You should ask your firm whether it has adequate systems capacity to handle high volume or high volatility days.

Be Prepared!
Basically, investors should be aware and armed with adequate information, particularly before engaging in on-line trading activities. The market is an ever-changing environment, making it more important than ever for investors to use investing tools they understand. Get to know the firm you are dealing with, and make sure that when you choose to trade online, you do so commensurate with your investment objectives and ability to tolerate investment risks.

Below is an example of one service provider for online trading

the next way to trade

We offer:
Over 25 currency pairs, 24 hours, with spreads from 3 pips*
A flexible margin policy—You can select either 50:1 or 100:1 leverage
Auto-close out to minimise losses
Fixed spreads in all market conditions*
Professional charts featuring over 140 indicators/oscillations
Professional and expert customer service support from 7am to 7pm,Mondays to Fridays
Flexible contracts: 1k, 5k, 10k, 50k and 100k
Low minimum deposit of US$250

They provide free in house educational seminar for investor who want learn more about FX trading...

For me, I didnt try this out before.. so if anyone have any idea or tried before can tell me. I saw lots of ad on this kind of provider these days..

Whats good,
You can see the charts for yourself! the trend, the history, the supporting and resistance line! I think nothing is best than looking at it yourself.
24hrs! BEst for the working society who do not have time to kept looking at the market...

The best investor always dont kept looking at the stock fall and rise, then heart attack with it...haha, bad for health also.
Sit back, relax, study the trend at night.


Saturday, July 4, 2009

Save money on medical...

Having a very bad stomach ache in the morning..

thinking of if one got sick, how to save $$ on medical.
First thing come to my mind is the medishield I have.. and the insurance...
others? Perhaps, will be going to polyclinics and govt hospital instead.

Is there other suggestions?

shall think about it...