Tuesday, July 28, 2009

Economic Update

Its been a while since a did a post on the economy.

Been looking through some of the reports/news and here is some important things to take note.

  • Some reports feel that market now is in the over-evaluation stage (However, this stage usually lasts for quite some time. But do expect a correction when almost EVERYONE starts to feel extremely confident about making a quick buck)
  • Out of the 64 banks in the US which has failed so far, 16 occurred this year (2009). The amount of $$ lost in the banks was USD 17.6 billion last year. However for this year to date, its USD 14.2 billion! WE ARE STILL LOSING AS MUCH $$!!
  • Ben Bernanke expects unemployment rate to go over 10% first before it eases. And the FED predicts this to happen around the 4th quarter 2010.

If we look carefully, the economic stimulus were placed quite some time back. However the financial institutions are still facing problems in the US. Why? This means that the real problems are not solved yet.

Though the stock market is supposedly a approx 6mths forward indicator of the economy, the real economy has not been really picking up just as fast as seen by the data. This implies that people are speculating!! So...Be CAREFUL! (However I feel that the speculation is just in the beginning stage, so there is actually still some room left)

Base on my own TA, I feel that there is still room for the Singapore market to go before the slight correction.

Target: STI 2800 (It will act as the resistance, however if this breaks, it should run)

Support: 2400

Sunday, July 26, 2009

Back from Indonesia

Hi all, I was away for the pass week in Indonesia for my school's project. The trip was enriching, however most of us also came down with food poisoning.

After some interactions with the people there, the locals in Indonesia do not actually know much about the financial crisis that had happened. And apparently they are not feeling any implications of the crisis at all. Interesting...

Here are some pics of my trip.

Monday, July 13, 2009

Preview Robert Kiyosaki Book

As mentioned by a fellow reader, preview the latest book by Robert Kiyosaki, 'Conspiracy of the Rich' at http://www.conspiracyoftherich.com/ before he starts to publish it and sell it!

*taken from conspiracyoftherich.com

From my past experiences reading this author's work, I feel that one should not believe/practice every single thing that he says. These are 2 reasons (in my opinion)

1. Lots of examples and scenarios are for the US. So it might not apply in Singapore due to difference in laws, especially tax laws.

2. Some of his examples will only work in the bull market.
For example, borrowing money to fiance a house that you cannot afford. He assumes that the rental income is sufficient to cover the bank loan. However in the event that the economy goes bad (like now), where are you going to get the money to pay off the loan? In the end, you might even lose all the repayment that you have already done.

However here are some good stuff that you can pick up.

1. Plan your finances!

2.Understand the tax laws in the country! It will help you save! Especially if you are a small business owner.

3.Have an open mind to look out for investment opportunities. ( This has to be practiced)

Saturday, July 11, 2009

Back from the US

Hi All! I'm back from the US.

Great trip. Shall be updating soon.. =)