Wayne's Invest-Insure Notes (W.I.I.N)

AUDSGD

2012-02-15T13:49:00.004+08:00

The AUD is now at the high of Oct2007 level versus the SGD @ 1.3337. Then at Oct2008 it weakened to a low 0f 0.9345.

A 30% decline over 12 months.

Will history repeat?

(BN) Pound May Decline 9% in Three Months Months, SEB Says: Technical Analysis

2012-02-14T07:48:00.001+08:00

WK: anticipation of 9% movement makes news

Bloomberg News, sent from my iPad.

Pound May Decline 9% in Three Months Months, SEB Says: Technical Analysis

The pound may weaken as much as 9 percent against the dollar during the next three months should it decline below a level of support, according to SEB AB, which cited trading patterns.

Sterling may drop to $1.44 should it fall below its 55-day moving average and to less than levels of key support at $1.52- $1.53, Stockholm-based chief technical analyst Anders Soederberg said today by phone. Britain's currency strengthened 0.4 percent to $1.5820 at 11:13 a.m. London time. It has dropped 1.3 percent this year according to Bloomberg Correlation-Weighted Indexes, which track 10 developed-nation currencies.

"If we manage to break out of the current range, we could rapidly end up at $1.44-$1.45," Soederberg said today by phone.

The pound rose to $1.5929 on Feb. 8, the highest level since Nov. 15, according to data compiled by Bloomberg. The 55- day moving average is $1.5603, the data show, based on closing prices. Sterling last traded at $1.44 in June 2010.

A moving average is an indicator that displays the average value of a security's price over a period of time. Support refers to an area where analysts anticipate orders to buy a currency and its related instruments. The stronger the support, the more selling is needed to fall through that level. Resistance is an area where sell orders may be clustered.

In technical analysis, investors and analysts study charts of trading patterns and prices to forecast changes in a security, commodity, currency or index.

To contact the reporter on this story: Emma Charlton in London at echarlton1@bloomberg.net

To contact the editor responsible for this story: Daniel Tilles at dtilles@bloomberg.net

Carry Trades

2012-02-13T19:59:00.001+08:00

Been experimenting and researching with currency carry-trades for a while.

Here are some expectations of my strategy:-

a) between 0.25%-1.50% p.a on interest credits;

b) between 13%-78% p.a on capital gains.

=========================================

My trades:-

Sell side

EUR/AUD

EUR/CAD

EUR/NZD

GBP/AUD

USD/CAD

Buy Side

AUD/CHF

AUD/JPY

AUD/USD

CAD/JPY

NZD/CHF

NZD/JPY

NZD/SGD

NZD/USD

Will update portfolio in a few weeks.

CNBC.com Article: Minister Urges Japan to Use Strong Yen

2012-01-23T01:10:00.001+08:00

CNBC.com Article: Minister Urges Japan to Use Strong Yen

Japanese companies should take greater advantage of the strong yen to increase overseas investments and buy natural resources, according to the country's economy minister. The Financial Times reports.

Full Story:
http://www.cnbc.com/id/46063434

-----------------------------------------------

Trading for Festive Holidays - Lunar New Year 2012

2012-01-16T11:45:00.001+08:00

Please see below for the respective markets available for trading during the coming Singapore festive holidays:

23^rd January 2012 (Mon) – Lunar New Year

24^th January 2012 (Tues) – Lunar New Year

	20^th Jan 2012 (Friday)	23^rd Jan 2012 (Monday)	24^th Jan 2012 (Tuesday)	25^th Jan 2012 (Wednesday)
US	Trading	Trading	Trading	Trading
Canada	Trading	Trading	Trading	Trading
UK	Trading	Trading	Trading	Trading
Europe	Trading	Trading	Trading	Trading
Malaysia	Trading	- Closed -	- Closed -	Trading
Hong Kong	Trading	- Closed -	- Closed -	- Closed -
Thailand	Trading	Trading	Trading	Trading
Japan	Trading	Trading	Trading	Trading
Australia	Trading	Trading	Trading	Trading
Korea	Trading	- Closed -	- Closed -	Trading
Indonesia	Trading	- Closed -	Trading	Trading
Philippines	Trading	- Closed -	Trading	Trading
Sri Lanka	Trading	Trading	Trading	Trading
Taiwan	- Closed -	- Closed -	- Closed -	- Closed -
China	Trading	- Closed -	- Closed -	- Closed -

Please note:

CHINA and TAIWAN markets are closed for the working week 23 Jan 2012 (Mon) – 27 Jan 2012 (Fri)

Zurich Financial Services

2011-12-12T20:21:00.001+08:00

Zurich Financial Services plans to boost life insurance business in Singapore http://t.co/Nys2EUG6 -- cnalatest

Ex-JPM Trader Bombell Starts Hedge Fund

2011-10-18T00:22:00.001+08:00

http://www.bloomberg.com/news/2011-10-17/former-jpmorgan-commodities-trader-bombell-starts-hedge-fund.html

Market tops and bottoms

2011-10-09T21:11:00.001+08:00

Market tops and bottoms are the same. They come and go before anyone can declare them accordingly.

Hedge Funds Buying Corn to Silver to Soy After Commodities Futures Decline- Bloomberg

2011-08-22T14:14:00.001+08:00

http://mobile.bloomberg.com/news/2011-08-22/hedge-funds-buying-corn-to-silver-to-soy-after-commodities-futures-decline?category=%2F

Hedge Fund Trade of the Week: Teva

2011-04-26T07:38:00.001+08:00

http://m.cnbc.com/id/42753816/

Government bonds lose appeal as inflation rises

2011-04-11T14:21:00.001+08:00

http://www.todayonline.com/Business/EDC110411-0000296/Government-bonds-lose-appeal-as-inflation-rises

Buy and Hold? Or Buy and Hope?

2011-04-11T11:53:00.001+08:00

http://stockideas.org/content/view/2681/88/

Hutchison Port falls on debut

2011-03-19T11:34:00.002+08:00

Yield @ 6.2% ($0.06262)

Investor Jim Rogers fretting about yen FundWatch - MarketWatch

2011-03-18T08:52:00.001+08:00

http://www.marketwatch.com/story/investor-jim-rogers-fretting-about-yen-2011-03-17?siteid=rss&rss=1

Please beware of Charity Scams | Skrill Corporate Blog

2011-03-16T19:36:00.001+08:00

http://blog.skrill.com/2011/03/16/please-beware-of-charity-scams/1900/?utm_source=rss&utm_medium=rss&utm_campaign=please-beware-of-charity-scams&utm_source=API&utm_medium=twitter

Bank of Japan injects $245 bln into markets - MarketWatch

2011-03-15T18:35:00.000+08:00

http://www.marketwatch.com/story/bank-of-japan-injects-245-bln-into-markets-2011-03-15?siteid=bnbh

New HK Trading Hours (Cash Market) wef 7Mar2011

2011-03-07T11:10:00.001+08:00

Please take note of the new HK Trading Hours effective 7^th March 2011.

Auction Session
Pre-opening Session	09:00 a.m. to 09:30 a.m.
Continuous Trading Session
Morning Session	09:30 a.m. to 12:00 p.m.
Extended Morning Session	12:00 p.m. to 01:30 p.m.
Afternoon Session	01:30 p.m. to 04:00 p.m.
No Orders Accepted on POEMS	04:00 p.m. to 4:25 p.m.(normal day trading), or 12:00 p.m. to 12:25 p.m.(half day trading)
Orders Accepted for next Trading Day	04:25 p.m. onwards

US dollar seen lower next week after jobs data

2011-03-06T10:24:00.001+08:00

http://www.straitstimes.com/BreakingNews/Money/Story/STIStory_642052.html

Long-term care online portal launched - Channel NewsAsia

2011-02-25T18:24:00.001+08:00

http://www.channelnewsasia.com/stories/singaporelocalnews/view/1112986/1/.html

CPF to continue with 2.5% OA interest payout

2011-02-17T12:30:00.001+08:00

http://www.todayonline.com/Singapore/EDC110217-0000202/CPF-to-continue-with-2,5-OA-interest-payout

CapitaMalls Asia Q4 profit down 15.2%

2011-02-17T12:27:00.001+08:00

RT @cnalatest: CapitaMalls Asia Q4 profit down 15.2% http://bit.ly/hSSGUB"

Personal Finance Daily: The week’s 10 best Personal Finance stories

2011-02-06T04:35:00.001+08:00

http://www.marketwatch.com/news/story.asp?guid=%7BA5588704-30AF-11E0-A2FA-00212804637C%7D&siteid=rss&rss=1

4 Oil ETF Indicators to Watch | ETF Trends

2011-01-31T10:49:00.001+08:00

http://www.etftrends.com/2011/01/4-oil-etf-indicators-watch/?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+etftrends-feed+%28ETF+Trends%29

Canada ETFs: An Indirect Commodity Play | ETF Trends

2011-01-24T10:18:00.001+08:00

http://www.etftrends.com/2011/01/canada-etfs-an-indirect-commodity-play/?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+etftrends-feed+%28ETF+Trends%29

More REITs to make debut on S'pore Exchange

2011-01-17T14:24:00.000+08:00

http://www.todayonline.com/Business/EDC110117-0000132/More-REITs-to-make-debut-on-Spore-Exchange

S'pore govt bonds to trade on SGX

2011-01-10T15:42:00.001+08:00

RT @cnalatest S'pore govt bonds to trade on SGX http://bit.ly/fiuUEI

German Bunds Lose Allure for Europe Fund Managers - Bloomberg

2011-01-04T17:48:00.001+08:00

http://www.bloomberg.com/news/2011-01-04/german-bunds-lose-allure-for-legal-general-frankfurt-trust-euro-credit.html

A Good Close

2010-12-31T17:35:00.005+08:00

A good close for 2010.

Snowball eked out a gain of 35.4% over 191 days or 78.4% when annualized;

21.9% better than the STI (Straits Times Index) over the same period.

:-)

'The Opening Act to the Broader Crisis'

2010-12-29T10:59:00.000+08:00

http://www.guggenheimfunds.com/resources/market-insight/market-perspective/article/10-12-21/The_Opening_Act_to_the_Broader_Crisis.aspx

HedgeFund.net RealTime

2010-12-28T11:40:00.001+08:00

https://www.hedgefund.net/HFNRealtime/bench_index_home.aspx

Payment for 2011 property tax bills

2010-12-28T10:12:00.001+08:00

http://www.iras.gov.sg/irasHome/page.aspx?id=11166

S'pore's inflation hits highest level since Jan 2009 - Channel NewsAsia

2010-12-23T14:49:00.001+08:00

http://www.channelnewsasia.com/stories/singaporebusinessnews/view/1100806/1/.html

Guide to Setting up a Hedge Fund in Singapore

2010-12-22T12:36:00.000+08:00

See link:-

Guide to Setting up a Hedge Fund in Singapore

Audacity of 'austerity,' 2010 Word of the Year

2010-12-21T08:00:00.001+08:00

http://www.google.com/hostednews/ap/article/ALeqM5irG2Ush_UhcgojHdQOP53ab7Gg_A?docId=50d0c7a979d245d485412d76e4de29ff

Shanghai to launch 24-hour trading - Channel NewsAsia

2010-12-13T13:35:00.001+08:00

http://www.channelnewsasia.com/stories/afp_asiapacific_business/view/1098869/1/.html

Tips for investing in high-end homes

2010-12-03T18:17:00.001+08:00

http://www.todayonline.com/Commentary/EDC101203-0000158/Tips-for-investing-in-high-end-homes

DBS Bank | Offer of 4.70% non-cumulative, non-convertible, non-voting preference shares in the capital of DBS Bank

2010-11-11T08:45:00.001+08:00

http://www.dbs.com/newsroom/2010/press101110.aspx

Japan Investors Duped Into Buying Iraqi Dinar

2010-10-26T17:20:00.001+08:00

BloombergNow (BloombergNow):
Japan Investors Duped Into Buying Iraqi Dinar as U.S. Withdraws http://ow.ly/2Zo8v

New Berkshire Hire May Be Buffett Successor

2010-10-26T11:21:00.001+08:00

TheStreet (TheStreet_News):
New Berkshire Hire May Be Buffett Successor http://ow.ly/19DoAV

Singapore's Fullerton Fund CEO quits

2010-10-20T16:48:00.001+08:00

http://sg.finance.yahoo.com/news/Singapore-Fullerton-Fund-CEO-rsg-1458872951.html?x=0

Finance industry bonus bonanza?

2010-10-13T12:04:00.001+08:00

http://www.todayonline.com/Singapore/EDC101013-0000093/Finance-industry-bonus-bonanza?

SPH's net profit up 18%

2010-10-13T11:39:00.001+08:00

http://www.straitstimes.com/BreakingNews/Singapore/Story/STIStory_590082.html

The role of testosterone in trading

2010-10-07T08:20:00.001+08:00

The role of testosterone in trading (Video)

Between hormones and risk taking on Wall Street...

Prada Said to Study Hong Kong IPO in First Half of Next Year - Bloomberg

2010-10-06T17:41:00.001+08:00

http://www.bloomberg.com/news/2010-10-05/prada-studying-initial-offering-in-hong-kong-next-year-as-earnings-surge.html

Singapore office space gets pricier, up 9 spots

2010-10-06T15:44:00.001+08:00

http://www.todayonline.com/Business/EDC101006-0000054/Singapore-office-space-gets-pricier,-up-9-spots

Prime rental rates remain unchanged in Q3

2010-10-04T16:45:00.001+08:00

http://www.channelnewsasia.com/stories/singaporebusinessnews/view/1085009/1/.html

Manufacturing-Oriented ETFs Benefit From Lower U.S. Dollar

2010-09-30T08:54:00.001+08:00

http://www.etfexpert.com/etf_expert/2010/09/manufacturing-oriented-etfs-benefit-from-lower-u-s-dollar.html?utm_source=feedburner&utm_medium=twitter&utm_campaign=Feed%3A+EtfExpert+%28ETF+Expert%29

Singapore's high-net-worth individuals' combined wealth surges 32.7% to $487 billion

2010-09-29T11:32:00.001+08:00

http://www.todayonline.com/Hotnews/EDC100929-0000088/Singapores-high-net-worth-individuals-combined-wealth-surges-32,7-to-$487-billion

GIC prepares $3.9 billion logistics IPO

2010-09-28T17:09:00.001+08:00

http://www.todayonline.com/Business/EDC100928-0000085/GIC-prepares-$3,9-billion-logistics-IPO

Tweet from TODAYonline (TODAYonline)

2010-09-28T11:50:00.001+08:00

TODAYonline (TODAYonline):
Harder now for million-dollar investors to become PRs http://bit.ly/bmAEZc

http://twitter.com/TODAYonline/status/25749708115

Hungarians Unwind Mortgages as Swiss Franc Hits Record High - Bloomberg

2010-09-27T18:46:00.001+08:00

http://www.bloomberg.com/news/2010-09-26/franc-reaching-dollar-record-means-hungarians-unwind-mortgages.html

Tweet from TODAYonline (TODAYonline)

2010-09-27T14:55:00.001+08:00

TODAYonline (TODAYonline):
1 in 3 deaths in Singapore caused by heart disease or stroke http://bit.ly/bYpNqY

http://twitter.com/TODAYonline/status/25664200088

Tweet from TODAYonline (TODAYonline)

2010-09-21T11:59:00.001+08:00

TODAYonline (TODAYonline):
Singapore ranked fourth global financial centre http://bit.ly/a0dGQr

http://twitter.com/TODAYonline/status/25078151669

Tweet from Koolred (Koolred)

2010-09-15T11:13:00.001+08:00

Koolred (Koolred):
It's Wed.. are you feeling lazy ald? Well we have something to boost your mind this morn: 111,111,111 x 111,111,111= 12,345,678,987,654,321

http://twitter.com/Koolred/status/24525879841

Tweet from Channel NewsAsia (cnalatest)

2010-09-10T20:58:00.001+08:00

Channel NewsAsia (cnalatest):
Global forex market seen to grow by 20% over next three years http://bit.ly/bt9dfm

http://twitter.com/cnalatest/status/24098782301

Tweet from Trend Facts (trendfacts)

2010-09-02T09:15:00.001+08:00

Trend Facts (trendfacts):
123 - 4 - 5 - 6 - 7 + 8 - 9 = 100 #trendfacts

http://twitter.com/trendfacts/status/22756890224

Tweet from Yahoo! SG Finance (YahooSGFinance)

2010-08-31T12:14:00.001+08:00

Yahoo! SG Finance (YahooSGFinance):
JP Morgan introduces 21 mutual funds to Singapore's retail market. http://bit.ly/awAvzK

http://twitter.com/YahooSGFinance/status/22583536492

News from TODAYONLINE

2010-08-25T10:38:00.001+08:00

@TODAYonline:

Seven local tech start-ups get backing http://bit.ly/aWhxq4

Tweet from Trend Facts (trendfacts)

2010-08-23T23:13:00.001+08:00

Trend Facts (trendfacts):
2,520 can be divided by 1, 2, 3, 4, 5, 6, 7, 8, 9, and 10 without having a fractional leftover. #trendfacts

http://twitter.com/trendfacts/status/21916102234

W.I.I.N Index Update 13Aug2010

2010-08-14T13:43:00.005+08:00

GLD and S&P500 seem to be the best bets.

Date 13-Aug-2010

Index Close 200 DMA + / - (%) Upper Lower Uphill Downhill Index

N225 9253.46 10167.42 -9% 11388 8846 23% 5% 0.92

S&P 500 1079.25 1115.75 -3.3% 1238 1060 15% 2% 2.20

JKSE 3053.01 2712.32 12.6% 3390 2333 11% 31% 1.79

H S I 21071.57 21023.04 0.2% 24597 18921 17% 11% 1.70

STI 2939.97 2846.7 3.3% 3302 2534 12% 16% 1.45

BSE 18167.03 17175.39 5.8% 21297 14943 17% 22% 1.85

GLD 118.74 112.93 5.1% 132.12 114.06 11% 4% 17.00

W.I.I.N Index Update 06Aug2010

2010-08-07T15:14:00.004+08:00

Date 06-Aug-2010
Index Close 200 DMA + / - (%) Take Profit Upside N225 9,642.12 10,188.66 -5.4% 11,411.30 18% S&P 500 1,121.64 1,115.17 0.6% 1,237.84 10% JKSE 3,060.59 2,698.05 13.4% 3,372.57 10% H S I 21,678.80 21,045.91 3.0% 24,623.71 14% STI 2,995.06 2,839.09 5.5% 3,293.34 10% GLD 117.84 112.55 4.7% 131.68 12%

Funds Promotion

2010-06-18T21:28:00.003+08:00

PSPL is having a UT Funds Promotion (promotional sales charge of 0.75%) until end Jun2010.

See http://bit.ly/cKfb7i or http://bit.ly/dufGR4

Investment Seminars in June2010

2010-06-09T20:42:00.001+08:00

http://216.119.98.122/sgx/edm/10june/edm_june.html

How budgeting can help you in reducing your existing debt

2010-06-06T12:21:00.001+08:00

Contribution from Kenneth Parker, an online reader.

Most often we run into a debt problem because we fail to manage our finances smartly. We live beyond our means, purchasing items which we can’t afford on credit. Hence, when you need help with debt reduction, budgeting is where you should look.

A personal budget would help you in keeping account of every cent that you may earn and spend within a period. Budgeting should be practiced without fail as it would help you in staying out of debt by making you more responsible with your finances. But it also can be used effectively when you are burdened with debt and wishing to become debt free.

How would you go about preparing a budget?

To begin with the task of budgeting, it is important to be aware of both your strengths and weaknesses, i.e. your assets and liabilities. Also you must have a clear idea about what you want to achieve through the budget. If you want to achieve the goal of debt reduction through the budget, you must tune it to that direction. Here is how you can prepare your budget.

Remember, that a budget should be prepared at a personal level and it’s very unlikely that any two individuals would have the same priorities.

List all your expenses: While starting with budgeting, you need to know what you actually spend when you don’t have the budget to consult. Put down all your expenses in a piece of paper.

List all your income: Next, you must find out why you have run into debt and for that it is important to know what you earn. List all the sources from where you get money every month.

Analyze your budget: Now comes the part where you have to do self evaluation. Once you have filled in both the income and expense columns, check where things can be improved.

If your total expense is higher than your income, you would seriously need to work on balancing both the sides.

Debt elimination: There are online debt reduction calculators available which would help you in determining the effort that you would need to put to become debt free.

Nothing would feel better than being able to repair your own mess and once again being able to live with clear conscience. So, even though living within budget seems difficult, once you successfully eliminate your debt you would feel great about it.

WIIN INDEX JKSE UPDATE

2010-05-29T16:29:00.004+08:00

Reference to http://www.waynekoh.com/2010/05/wiin-index-sti-update.html

; Same methodology but for JKSE.

entry @ 2,180 or below.

WIIN INDEX N225 UPDATE

2010-05-22T18:49:00.003+08:00

Reference to http://www.waynekoh.com/2010/05/wiin-index-sti-update.html ; Same methodology but for N225.

entry @ 8,000 or below.

WIIN INDEX BSE UPDATE

2010-05-20T01:28:00.005+08:00

Reference to http://www.waynekoh.com/2010/05/wiin-index-sti-update.html ; Same methodology but for BSE.

Entry @ 13,590 - 13,600

WIIN INDEX S&P500 UPDATE

2010-05-15T15:18:00.004+08:00

Reference to http://www.waynekoh.com/2010/05/wiin-index-sti-update.html ; Same methodology but for S&P500.

Entry point 990 and below.

Medisave sum to go up

2010-05-14T11:44:00.001+08:00

http://www.straitstimes.com/BreakingNews/Singapore/Story/STIStory_526475.html

WIIN INDEX HSI UPDATE

2010-05-12T12:08:00.005+08:00

Reference to http://www.waynekoh.com/2010/05/wiin-index-sti-update.html ; Same methodology but for HSI (Hang Seng Index).

Entry level @ 18,000 - 18,800

WIIN INDEX STI Update

2010-05-11T20:18:00.006+08:00

Have been fumbling with this "200-Day Moving Average" idea for a while, and now it is starting to take shape.

Here is a chart that plots the distribution of the spot relative to its 200-day moving average (See the "inverted bell" chart).

I find that the favourable points to enter the market (i.e presumably buying the STI ETF for this example) would be when the 200-day moving average is about 14% below the spot level.

And the favourable points to exit the market (i.e presumably selling the STI ETF for this example) would be when the 200-day moving average is about 20% above the spot level. And the spot where the market spent most of its time, is at the 6% above spot level. Every market would have its own set of characteristics, I will examine them in later posts.

Well, this is not a sure-win formula, not until I have proven and tested it 20, 30 years (using my own money, of course) from now. My objective is not to be the biggest winner, but my benchmarks are:-

i) inflation;

ii) market performance level.

Since my personal belief is market performance is somewhat a self-adjusting mechanism to long-term inflation (i.e the market will be at least on par to long term inflation, else no business can and will exist). I gather that so long I can buy below the market and sell above the market, I will be out-performing the market over the longer term, well, 20, 30 years or longer.

I have tested a portfolio of S$5000 using this idea since Jan2008, and it has served me well (though it is still below the original value at the beginning of the investment journey). See the top section of this blog with the heading "WIIN-BFS".

Looking at STI closed at 2880.48 (10May2010), it is now about 4% above the 200-day moving average at 2,769.98

Based on straightforward calculation, the STI will be good to enter at 2,280 - 2,330 range.

Raffles Edu Share Buyback

2010-05-06T09:57:00.001+08:00

http://raffleseducation.listedcompany.com/news.html/id/208511

Phillip Securities Commentary 03May2010

2010-05-05T13:12:00.001+08:00

ETF Seminar

2010-04-30T19:52:00.001+08:00

EXCHANGE TRADED FUNDS (ETF) –
THE NEXT BIG THING IN TOWN

ETF Investment Seminar
Date: 15May10(Sat) 1pm-6pm
Venue: SGX Auditorium
SGX Centre 1, Level 2 (Opposite Lau Pa Sat)
Click here for details

Not an investment

2010-04-27T21:13:00.004+08:00

My view on this statement made by National Development Minister. In particular, this statement:-

" Mr Mah said: 'I have to emphasise that buying an HDB flat is not an expenditure, it is an investment...because when you buy an HDB flat, at the end of the tenure of the flat or towards your retirement, that HDB flat is a very significant store of value.'"

Our primary housing should never be seen as an "investment", Mr Mah Bow Tan seems to get it wrong! Primary housing is a NEED as far as 80% of the population are concerned!! What is the point of having a million-dollar 3-room flat when the market is down, i.e you are upside down on your mortgage. Imagine, you borrow $900k and the flat happens to be worth only $500k when the market really goes for a correction. This statement by the minister does not hold ground.

Financial Peace University

2010-04-26T23:29:00.003+08:00

I think this guy will be looked upon as one of America's saviours 50 years from now.

Dave Ramsey, the man.

Part 1: http://www.youtube.com/watch?v=oLX3wUY1xGg

Part 2: http://www.youtube.com/watch?v=uQQ0DI1nv8M

Part 3: http://www.youtube.com/watch?v=Al_xeLkhMBY

www.aviva.com.sg

2010-04-22T10:19:00.004+08:00

Of late, Aviva seems to be coming on hard and strong as a competitor in the Singapore insurance industry landscape.

Recent evidence of the above:-

a) Aviva My Protector level term plan costs 9% lesser than "all-time-Singapore-house-brand" NTUC Income's term plan. -- Definite shocker as they used to be more expensive 2,3 years ago.

b) Motor insurance: Heard from Radio -Class 95 this morning about their advertisement- go to www.aviva.com.sg to get an instant quote. My motor insurance is due May2010, and I went to www.aviva.com.sg and got an instant quote. Guess what? It cost 1.85% less than the already so-very-affordable India Insurance (renewal) that I have had for the past 2 years.

c) SAF Group Term Insurance: Received a mailer of upgrading my existing SAF Group Term Insurance which I readily signed on the mailer, put it in the self-addressed envelope and sent back.

Watch out and good luck, NTUC Income!.

Imsavvy-Forum-Insurance

2010-04-20T01:20:00.001+08:00

My posting on http://www.imsavvy.sg/ @ 2010-04-19 10:28 PM

As the Singapore saying goes - "Can afford to die but cannot afford to get sick in Singapore". For me, I feel the top 2 must-have plans are:-

(1) Hospital and Surgical (H&S) Plan or commonly known as Shield Plan: I have an "as-charged" Incomeshield plan (w/ Rider) covering from the first dollar. It covers up to private hospital admission.
I feel this is a must-have because hospital stays can easily cost a few thousand dollars. The plan is affordable and worth the money. I wrote about this on ST Forum (Nov2007):http://www.moh.gov.sg/mohcorp/mediaforums.aspx?id=17728

(2) Critical illness coverage: I have term insurance covering Death + Terminal Illness + Critical Illness, sum assured is 10 years of my (humbly simple) living expenses. I chose term insurance because I VALUE COVERAGE over cash value in endownment/ whole life policies. If I am not wrong, I think term insurance premiums can actually get cheaper over time due to competitve reasons. I invest the difference I would have paid otherwise for a whole life policy. Basically, my strategy is Buy-Term-Invest-The-Rest (B.T.I.T.R).

As for which company to buy from, I would recommend engaging an IFA (Independent Financial Advisor) instead of tied agencies. IFAs tend to have more variety in terms of product offerings. I would normally ask for 3 quotes for comparison sake. However, do note that having 3 quotes does not necessarily guarantee impartiality on the part of the advisor. I always believe I would support an advisor with the "heart of a teacher" and not a "salesman".

Pace your SRS 2010

2010-04-19T23:38:00.003+08:00

This is a repeat of "Pace your SRS" first blogged in 2008.

Additional info: Besides Phillip MMF, you can also consider LionGlobal SGD MMF to park the savings set aside for SRS.

SRS – The ‘Lifestyle’ perspective

2010-04-18T04:17:00.006+08:00

It's time to start planning to ZERO-lize your tax...

in case you haven’t heard of it, it is SRS - Supplementary Retirement Scheme

For whom? : For anyone who pays income taxes.

For what? : As the name suggests, it is "R" for Retirement. But my discussions with friends have indicated that "R" can also be for "Retrenchment" and "Relaxation", depending on the circumstance applicable. To put things in perspective, I have created a table for illustration.

How much? : Your payable income tax depends on your income, reliefs etc. So if your income tax is only S$100, there is no point to try to "max out" the SRS, it is just like taking excessive vitamin pills, you literally waste it and it may be harmful. The key thing is to "do just enough".

How to? : Calculate how much you have earned so far this year, and estimate your income for rest of the year; Take a guide from your most recent assessment, unless you have never done before.

Invest in what? : From low-risk endowment-fixed-income instruments to unit trusts to stocks.

FAQs (on MOF’s website): http://app.mof.gov.sg/supplementary_retirement_scheme.aspx

Fund your CPF-OA deficit

2010-04-16T02:14:00.003+08:00

Like most Singaporeans, I am paying my housing mortgage from my CPF-OA, which is an ok thing to do, except the retirement funds that is supposed to be built up in the CPF-OA account is not doing so, as most of the money is paid into the mortgage. A catch 22 situation, huh?

Then again, why not position it this way: FUND THE CPF-OA DEFICIT

Which means, if I am paying S$400 per month from CPF-OA into mortgage, I should park $400 from my savings into SRS and then invest the money; That not only plugs the CPF-OA deficit, and I get to enjoy some tax reliefs. Nice!

There is no magic in the above, just some shift in thinking. Another way to (re-)position your personal finances.

Bring order to your financial future

2010-04-12T23:34:00.003+08:00

I find this podcast from Vanguard: Plain Talk on Investing very straightforward and easy to understand.

https://personal.vanguard.com/us/insights/audio/PT-personal-finance-040512010

And there is also transcript attached.

Life Insurance Tax Relief

2010-04-12T09:22:00.007+08:00

The dateline for income tax reporting is round the corner, 18Apr is the last day if you intend to report using the online method.

If you have contributed to SRS before 31Dec2009, you will be able to enjoy some tax deductions this time round.

If you have contributed S$5k or more to your CPF in 2009, you will not be able to claim life insurance relief, which gives rise to what I am going to write here: If one is unable to claim life insurance relief, is it then feasible to buy whole life insurance? After arranging some thoughts, this is what I gathered:

Assuming a person aged about 33-37 with S$40k annual salary under two different employment situations:

1) Salaried employee with CPF contribution.

Annual salary = S$40k, CPF contributed= S$8k

Insurance premiums (Whole life) paid = **S$500 per month or S$6k per year

Since CPF contributed is more than S$5k, therefore no relief can be claimed on life insurance premiums.

2) Self-employed without CPF contribution.

Annual salary = S$40k, CPF contributed= S$0

Insurance premiums (Whole life) paid = **S$500 per month or $6k per year

Since CPF contributed is none, therefore S$6k relief can be claimed on life insurance premiums (or 7% of insured amount, whichever is lower)

**S$500 per month affords about S$100k in (whole life) insurance coverage.

Based on the above 2 scenarios, it is definitely not a good idea to park the S$6k into whole life insurance premiums since most people contribute to CPF. A better way for the salaried employee i.e most people could be:-

3) Salaried employee with CPF contribution.

Annual salary = S$40k, CPF contributed= S$8k

Insurance premiums (Term life) paid = ***S$55 per month or S$660 per year

Since CPF contributed is more than S$5k, therefore no relief can be claimed on life insurance premiums.

Park S$445 x 12 = S$5.34k into SRS and get tax relief. (FYI: S$445 = S$500 - S$55)

Invest the S$445 x 12 x 30 years on an 8% per annum compounding, the pot of gold at the end of 30 years is S$610k, not yet including the taxes saved along the way.

***S$55 per month affords about S$100k in (term life) insurance coverage.

So what is this?: B.T.I.T.R + SRS

Additional info:

http://www.cpf.gov.sg/imsavvy//blog_post.asp?postid=993142374-74-5296550988
http://teaengpeng.blogspot.com/2009/06/life-insurance-tax-relief.html

http://www.waynekoh.com/search/label/Supplementary-Retirement-Scheme-SRS

Will the USD bounce back?

2010-04-09T20:50:00.008+08:00

I thought I lost this amongst my google docs. Here it is!

Between Nov2009-Mar2010, I put up an online form for visitors to vote whether they thought the USD was to go into a tail spin in 2010 or bounce back.

The results:-

53% said YES, USD will bounce back
47% said NO, USD will not bounce back

Click HERE for the Deutsche Bank US Dollar Index.

Click HERE for the Dollar Index spot.

My views on public housing

2010-04-08T12:46:00.002+08:00

Wayne said...

"To: Anonymous@April 07, 2010 3:57 PM

If I remember correctly, this example you gave was what Mr Tan mentioned some time back, during the time of the 50s/ 60s, when civil servants are allowed to only purchase flats priced below 5 times their annual salaries. This is a good idea.

My opinion is, key thing is to educate people to be contented with the very first flat they purchase in their names, i.e usually the matrimonial flat. However, it seems even young people nowadays are so locked into making money out of their flats that nothing else matters. I am of the view that the primary housing should NEVER EVER be treated as an INVESTMENT. The roof over one's head must never be speculated! It is afterall a basic need.

Assuming if everyone goes by the ideal mindset that they stay in their first flat thoughout their lives and servicing a mortgage rate of 2.6% for 30 years, there will never be a "bubble" like what is seen recently. And when the personal or family finances stabilizes, then a second or third property can be bought as an investment."

April 08, 2010 12:58 AM

See more on http://tankinlian.blogspot.com/2010/04/affordable-housing.html

CPF INTEREST RATE FOR SPECIAL AND MEDISAVE ACCOUNT MONIES FROM 1 APRIL 2010 TO 30 JUNE 2010

2010-04-07T17:15:00.002+08:00

See http://mycpf.cpf.gov.sg/CPF/News/News-Release/N_18Mar2010.htm

Irrational exuberance

2010-04-06T20:18:00.002+08:00

No better way to describe the auto market in Singapore than the title itself.

Look at THIS !

Singapore TOTO

2010-04-04T15:34:00.005+08:00

Here is a good website that explains the ins and outs of Maths if it is your interest.

http://www.intmath.com

In particular, this is a good article on Singapore TOTO:

http://www.intmath.com/Counting-probability/Singapore-toto.php

CHECK THIS OUT!:

"there is 1 chance in 8,145,060 of getting the Group 1 prize."

which means you need to spend S$8,145,060 divided two (S$0.50 per set) =

S$4,072,530 to win S$650,000 (not guaranteed sole winner)

(Is this not a sure-lose deal?)

So the idea of "investing" in TOTO, as commonly claimed by people I talk to, is fundamentally a stupid one. I have stopped "investing" in TOTO since 2-3 years ago. However, I think it is ok to buy S$1.00 worth (2 sets) per year in the Hongbao draw, with a top prize of S$10 million during the Lunar New Year period.

See my previous writing on 4D

Impressive charts

2010-04-02T01:55:00.001+08:00

http://www.wallstreetannex.com/

Quote (002-2010)

2010-03-31T10:49:00.002+08:00

"We are our own worst enemies,"

"We buy at the highs and sell at the lows."

===== John C. Bogle =====

Author of "Common Sense on Mutual Funds,

Founder, Vanguard Investments

Bond and Bond ETF

2010-03-18T02:03:00.001+08:00

For reading:-

http://203.116.77.213/poems/stocks/eTF/bondetf.pdf

Dave Ramsey on life insurance

2010-03-09T02:51:00.001+08:00

Quote (001-2010)

2010-02-27T18:18:00.002+08:00

"Work is doing it.

Discipline is doing it every day.

Diligence is doing it well every day."

----- Dave Ramsey

Berkshire Hathaway (BRK.B) becomes even more affordable

2010-01-20T21:50:00.004+08:00

With the stock now approved for a 50-for-1 split, it looks like I can finally accommodate some BRK.B in my portfolio. Great!

Tiger Airways IPO

2010-01-14T11:27:00.000+08:00

Tiger Airways IPO

Public Offer: 12,386,000 offering shares
Maximum offering price: S$1.65 per share (proceeds of S$246.8m)
Underwritten by: Citigroup, Morgan Stanley and DBS

Important Dates:

18 Jan 2010 - Closing date and time for Singapore Public Offer
22 Jan 2010 - Commence trading on a 'ready' basis

Financial performance
- Operating revenues grew with a strong CAGR of 71.6% from FY06, reaching S$378.0m (US$268.3m) in FY09. Total revenue for the six months ended 30 September 2009 was S$206.1m (US$146.3m), representing an increase of 12.4% YoY.
- Net loss, on the other hand, stood at S$8.3m, better than S$25.2m in previous corresponding year.
- This compares to S$5,953.5m in 1HFY10 revenue and S$465.9m in net loss for SIA (3.5% of SIA's half-year revenue and 1.8% of its net loss)

A Quantitative Approach to Tactical Asset Allocation

2010-01-06T10:26:00.001+08:00

Overheard this research discussed in a bloomberg interview (podcast). Good stuff

iTODAY: Reminder to sign up for GST credits

2009-12-23T09:33:00.001+08:00

From IToday- Reminder to sign up for GST credits

Singaporeans who have yet to sign up for their GST Credits should do so by Dec 31. They can do so through the Internet at www.gstoffset.gov.sg or through forms available at any Community Centre, Community Development Council or CPF Service Centre.

All forms should reach CPF Board no later than Dec 31.

Those who do not sign up by the deadline will be ineligible for their 2009 GST Credits and Senior Citizens' Bonus. While they will still be eligible for next year's GST Credits, there will be no retrospective payment of their 2009 GST Credits and Senior Citizens' Bonus.

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iTODAY: Cash may not be king after all

2009-12-17T14:06:00.000+08:00

Article from iToday.

UOB ASSET MANAGEMENT- Cash may not be king after all

The investment outlook for 2010 is shaping up fairly well. In this article, director at UOB Asset Management, Anthony Raza, sheds light on why investors should get invested and be balanced.

In 2008, many investors learnt that cash was a great investment. Equities in markets around the world fell by 50 per cent and 60 per cent and even the bluest of blue chips did not emerge unscathed.

Cash investment became less attractive this year as equities rebounded by 20 per cent in developed markets and over 60 per cent in emerging markets.

Has the rally been missed? Most data have indicated that many investors are still holding cash after pulling their money out of equities last year; we are concerned that investors may have learnt the wrong lesson from the recent crisis.

Staying in cash in 2010 could expose one to more risks than expected. On a risk/reward basis, cash is not very attractive. Inflation is growing as a risk, especially in Asia, and cash has no inflation protection.

With the average bank deposit interest rates at less than 1 per cent, there is no compensation for the risk of an investor's cash dwindling in value.

These are clearly difficult and confusing times, and investors are likely getting conflicting advice.

If you were to poll five economists about what will happen over the next few years, you would likely get five very divergent views.

Some may say that inflation is a big risk while others will see deflation as the risk; some think that the recovery will be "V" shaped while others say that it will be "L" shaped.

Without even stating our view on the trajectory and risks in the economy, we would say that, historically, investment in equities during such similarly confusing times usually have long periods of strong performance.

So, even if you are not convinced that all is right in the global economy, there is, however, a strong case for you to get invested in the markets again.

In 1933, 1975 and 1982 were periods with very deep recessions. In 1933, the United States gross domestic product (GDP) fell by 25 per cent from pre-bust levels, unemployment was over 20 per cent and there was persistent deflation.

In 1975, there was stagflation (low growth and high inflation). In 1982, interest rates in the US were over 15 per cent and the unemployment situation was similar to what the US is facing now.

For the 1933 and 1975 recessions, the economic problems took around seven to 15 years to really work out.

But the markets did perform during these periods: In 1933, the stock market rally began and lasted for five years and increased over 300 per cent; from 1975, the stock markets rallied for two and a half years and increased almost 90 per cent. And 1982 was the start of the longest bull run in US equities that lasted for 18 years.

Unlike most investors in developed markets, local investors tend to be less balanced in their investments.

When willing to take risk, many investors will go to the extremes of placing heavy allocation in small-cap equities; similarly, risk-averse investors will go to the extremes of putting their life savings in principal-protected structured notes.

Neither may be advisable strategies over the long term. A more advisable strategy is to invest in a balanced portfolio of equities, bonds, properties, commodities and cash.

Don't stay on the sidelines or wait for the market to reach bottom to get invested again.

In our view, 2010 is shaping up to be a fairly good year for markets despite all the economic confusion.

Our investment stance is to stay invested and maintain a healthy balanced portfolio to diversify the risks in the current investment landscape.

We are overweight in equities with a focus on emerging markets.

In bonds, we are overweight in corporate bonds with a focus on emerging markets. In commodities, our only overweight is in gold.

Basis point

2009-12-15T11:34:00.001+08:00

http://en.wikipedia.org/wiki/Basis_point

iTODAY: All that glitters is not gold

2009-12-09T09:45:00.002+08:00

Article from ITODAY

All that glitters is not gold

Probably the only real surprise about the surge in gold prices is that it took so long to arrive.

Last week, gold touched an all-time high of US$1,227.50 ($1,705). In September it was still less than US$1,000. The price has dropped below US$1,200. It isn't hard to figure out why investors are interested in gold again. Central banks are pumping fresh money into the system. Economic history says that eventually this will lead to inflation. In reality, gold has a mixed record. A few industrial uses and jewellery aside, gold is valuable only insofar as other investors think it is valuable.

There isn't much chance of central banks making their currencies convertible into gold again. It may secure itself a greater role as a reserve asset.

Gold may have a role in protecting against inflation, but there are alternatives.

Real-estate rebound

The price of real estate will not always move in line with inflation. And you might want to steer clear of the markets where there has yet to be a retreat from the exuberant prices of 2006 and 2007. Even so, if there is more money chasing a static amount of land and buildings, prices will rise.

Crude oil

Oil has stopped being just stuff that we put in our cars, and become an investment in itself, effectively making it an alternative to gold.

Stock picking

Moderate, persistent inflation in the 3-per-cent range is good for big, blue-chip companies. They can edge up prices along with everyone else, and usually get away with increasing wages just a bit less than inflation, cutting labour costs. In those circumstances, shareholders should do fine - and their equities will more than keep up with rising prices.

Luxury goods

Once inflation takes off, only real assets that will hold their value - everything else is just paper. They should start to soar in price as the mega-rich realise they are among the few ways to protect wealth.

Private-equity funds

A leveraged buyout firm buys well-established companies in basic industries then loads them up with debt, while hanging on to a bit of equity. Inflation will effectively wipe out all that debt. The result? The equity that is left over will be worth far more.

None of these will necessarily work in the long term. The only real way to control inflation is to raise interest rates high enough to create a deep recession, and choke off rising prices. That's what central bankers did in the late '70s and early '80s, and may do again sometime around 2015 or 2020. Once that happens, you might not want to be in property or equities.

That, is some way off. As we move into the early stages of an inflationary era, those five assets should do at least as well as gold, if not better.

Matthew Lynn is a Bloomberg News columnist. The opinions expressed are his own.

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