Investments
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I am very surprise people are still talking about investment in bank shares. As it is said many times, they are papers and carry significant risk at this time. Almost all banks in the world are related, if a few nations in europe and even USA default, i don’t think any bank in the world will be spared.
The main reason why more money is flowing into precious metal like gold is exactly because our real interest rate is negative ( interest - inflation). These money seeks out gold because it is not earning anything sittng in the bank and even have inflation corroding away its purchasing power. These money instead flow into gold which at least will preserve its purchasing power and on top of that, it is totally out of the deteriorating global financial system and is out of the sticky hands of all the politicians.
If people insist in buying shares, I’ll suggest super-blue chips world brand names like Nestle, Johnson and Johnson etc…These companies sell products that people need to use no matter what happens to the financial systems and they are blue chips world brands that won’t easily disappear. Their share prices are relatively stable compare to most other stocks. These brand names are whole lot better than any banks. That said, i am not in any of them. i believe in gold/silver only at the moment. -
WeiHan:
i believe in gold/silver only at the moment.
Interesting! Is now still the right time to enter the market? Gold price has gone up quite a bit. Not too sure about silver. -
alng:
The right time is always in the past...WeiHan:
i believe in gold/silver only at the moment.
Interesting! Is now still the right time to enter the market? Gold price has gone up quite a bit. Not too sure about silver.
In order to be cheap or expensive, it is in relation to the past. Nothings cheap now that was not expensive in the past, and vice versa. Better to view it in relation to the future, which is very subjective, and makes the difference between a good call or not.
Interesting that you ask about the right time as the markets are bleeding from spaghetti slash wounds today... HK is down almost 5% just.
One just know what is going on, then make a decision... For me, I know that when the time is right, it is a no brainer... right now, the threat of a meltdown is rather high, and in a major selloff, everything except a few will fall like there is no tomorrow. So, whatever you do, make sure you know what you are doing, take small bites, and pace yourself.
All the best! -
alng:
It is still THE RIGHT time for gold. In fact, it is just at the juncture that it will go big. However, it is entering phase that is very volatile, so don't be surprise at intra-day $100+ fluctuation.WeiHan:
i believe in gold/silver only at the moment.
Interesting! Is now still the right time to enter the market? Gold price has gone up quite a bit. Not too sure about silver.
As some said, all papers are doomed, after a century of experimentation Smart money have and will quickly position themselves in gold, silver, wealth generating assets etc...Holding papers is a sure die. But then, I know people just see and talk and the price can just keep going up and they never press the button. The train just leaves the station.... In a deflation unwinding, like those in the 20s 30s, everything went down. Gold and mining stocks may go down initially but eventually it was not only up but up big. Many mining stocks crashed by more than 50% in 2008 but many have rebounded and surpassed their highs many folds. If you are looking for gold and gold stocks to decline first, then have you determined when is the entering point when it really starts dropping? -
Good point. Unfortunately not everyone share your confidence. Commodities are very much just an idea that people buy into, as with property. Just as Warren Buffet stay away from alot of profitable stocks such as dot.com and tech shares/stocks, we stay away from Gold/Silver simply for the very same reason that we don't understand it at this point in time.
Guess you had probably did your homework well. We have a potential millionaire in the making.... Or perhaps you are one already.... Perhaps your indepth analysis of the future performance of Gold/Silver (how it will pan out and why you believe it so, with supporting facts/data), will greatly enlighten us.
:celebrate: -
toddles:
now to get off my bum and get some ETFs via fundsupermart(?) to minimise costs...
Don't think FSM sells ETFs. You can only transact ETFs using local brokerage (e.g Kim Eng, DBS Vickers, iOCBC etc) from SGX
Do note that not all ETFs are the same. You want to determine if they are traditional ETFs or Synthetic ETFs. Synthetic ETFs have their risks too
More information about ETFs can be found here
http://www.lyxoretf.com.sg/fileadmin/user_upload/ETF/SG/ARCHIVES/0808_InvestMag_A_quick_primer_on_ETFs_v4.0_SL.pdf
http://www.lyxoretf.com.sg/fileadmin/user_upload/ETF/SG/ARCHIVES/090505_InvMag_ETFs_Continue_Rapid_Growth_In_Its__Short_History.pdf
http://www.lyxoretf.com.sg/fileadmin/user_upload/ETF/SG/ARCHIVES/0906_InvestMag_How_to_build_your_ETF_Portfolio._v4.0_SL.pdf
http://www.lyxoretf.com.sg/fileadmin/user_upload/ETF/SG/ARCHIVES/0901_InvestMag__Investment_and_Portfolio_Management_Stratgies_with_ETF_v4.0_SL.pdf
http://www.lyxoretf.com.sg/fileadmin/user_upload/ETF/SG/ARCHIVES/0810_InvestMag_Misconceptions_about_Liquidity_v4.0_SL.pdf
http://www.lyxoretf.com.sg/fileadmin/user_upload/ETF/SG/ARCHIVES/090505_InvMag_ETFs_Exchange_Traded_Funds_-_Outlining_issues_for_investors.pdf
http://www.lyxoretf.com.sg/fileadmin/user_upload/ETF/SG/ARCHIVES/0902_InvestMag_Risk_Risk_Risk_v4.0_SL.pdf -
WeiHan:
If people insist in buying shares, I'll suggest super-blue chips world brand names like Nestle, Johnson and Johnson etc...These companies sell products that people need to use no matter what happens to the financial systems and they are blue chips world brands that won't easily disappear. Their share prices are relatively stable compare to most other stocks. These brand names are whole lot better than any banks. That said, i am not in any of them. i believe in gold/silver only at the moment.
When buying US blue-chips, one must consider the estate duty, capital gain tax or dividend tax. Not forgetting about the currency exchange risk. It might not be cost effective at the end of the day.
My advise is beware of falling into the trap of buying \"Religion\" or \"You-won't-be-wrong-if-you-buy-this\" stock.
For those invest in GE or Xerox stock, take a look what has happened to them now.
Where is Eastman Kodak or Polaroid now? They were very solid stocks then
Looking back further in history, see the fate of \"Nifty Fifty\"
http://en.wikipedia.org/wiki/Nifty_Fifty -
dicky:
Commodities are very much just an idea that people buy into, as with property. Just as Warren Buffet stay away from alot of profitable stocks such as dot.com and tech shares/stocks, we stay away from Gold/Silver simply for the very same reason that we don't understand it at this point in time.
Warren Buffet also can't understand investing in gold. He is puzzled by why investing in an asset that don't grow in value organically and based on supply-demand. Why dig out something (through mining) from the ground, buried it back again (through locking in safe & vault) and trade it.
Trading of commodities is of course a different story. Probably it is based on the Greater Fool Theory.
http://en.wikipedia.org/wiki/Greater_fool_theory
Akin like playing musical ball. When the music ends, see who is the last one still holding to the ball
Kudos to those trade in commodities. :udaman: They must have the edge. Definitely I can't be at that same level to those commodities traders. Too complex for me -
daddy2007:
You sign a W8BEN form to declare that you are foreign investors. With that you are exempted from all taxes when you invest in US. That is the same whether you open an account with local brokerages or online brokerages like TDAmeritrade etc...Exchange rate is not really a risk if your investment is a sound one and profitable. The loss in exchange rate will most often be offset by the porfit from the investment if that investment is really a profitable one in ABSOLUTE term.WeiHan:
If people insist in buying shares, I'll suggest super-blue chips world brand names like Nestle, Johnson and Johnson etc...These companies sell products that people need to use no matter what happens to the financial systems and they are blue chips world brands that won't easily disappear. Their share prices are relatively stable compare to most other stocks. These brand names are whole lot better than any banks. That said, i am not in any of them. i believe in gold/silver only at the moment.
When buying US blue-chips, one must consider the estate duty, capital gain tax or dividend tax. Not forgetting about the currency exchange risk. It might not be cost effective at the end of the day.
My advise is beware of falling into the trap of buying \"Religion\" or \"You-won't-be-wrong-if-you-buy-this\" stock.
For those invest in GE or Xerox stock, take a look what has happened to them now.
Where is Eastman Kodak or Polaroid now? They were very solid stocks then
Looking back further in history, see the fate of \"Nifty Fifty\"
http://en.wikipedia.org/wiki/Nifty_Fifty
You see here....we are already trapped in the maze that fiat currencies have given us. When we talk about investments, people start bringing issues of exchange rate risk etc....which by right should have nothing whatsoever to do with a genuine investors. The central bankers and politicians of the past force down the throat on us the use of fiat currencies. As an investor or businessman, his genuine risk is whether he can produce his products or services at a market competitive rate and he can maintain a growth of customers base. rate exchange risk has should not have been his concern. then how do we we measure wealth since all currencies are constantly fluctuating against each other. Since early history, gold has always been an absolute measure. It is analogous to the sun and moon which we have used to mark time, day and night, in absolute term. Without that, all economic rythm will go heird wire.
The example you gave is totally different from mine. Kodak, polaroid etc...have their products replaced by new technologies. In this case, the invention of digital camera. In this sense, they don't qualify as blue chips. The example I gave was Nestle, as far as I see, I don't figure how their products can be replaced and there even are any rivals that are close to replacing them. When looking for investment, it is very important to look at this aspect, the entry barrier and whether the company has a monopoly. The same goes to Johnson and Johnson. I didn't really say that nothing will go wrong with these examples, I was just saying that they are way better than banks and financials.
I agree with you that when investing, one should be careful with the attitude that \"nothing will go wrong\". However, one should have his anaylsis based on as broad and deep information is available. Eventually you need to so to speak, press the button, right? All great investors have conviction with their final decision and stick with it. Like what Jim Roger said, he never see a rich technician. What he meant was that, all rich investors don't make it by timing the market. they make it by having conviction with their insight and analysis and hold their investments through ups and downs. -
It seems that Warren Buffett’s view about gold is quite often quoted.
To be fair to gold, I’ll like to mention the use of gold that is lesser known.
Gold as a good reflector for infra red radiation is often used as a coating for satellites to prevent heating up by the infra red radiation from the sun. I don’t think I need to regurgitate the importance of satellites.
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