The Myths & Realities of Achieving FINANCIAL INDEPENDENCE

Read? What is Wealth? I am not Rich nor a Millionaire

By John Cummuta

Fnancial Independence.

What exactly does it mean? Well, Webster's Dictionary defines the terms this way:

Financial:

Pertaining to the science of managing money.

Independence:

Freedom from assistance by others.

So financial independence means the ability to manage your money in such a way that you have sufficient funds to live your chosen lifestyle without assistance from others. In other words, enough money to meet all your needs whether you work or not, because a job is really assistance from someone else — your employer.

Notice that this definition doesn't mention amounts of money or the symbols of having money that we often attach to financial independence. To some people financial independence might mean yachts, mansions, and expensive foreign cars; while to others it might simply mean never having to worry about bills again — knowing they will always have a comfortable home and the time and resources to enjoy their interests and hobbies. For many, not having to work a second job, or maybe just having sufficient income so their spouse could stay home with the children, would constitute financial independence.

What does financial independence mean to you? What would it mean to your life? How would your days and nights be better if you knew you had the resources to meet all your financial obligations for the rest of your life?

Createwealth8888: I personally like this definition of Financial Independence. I believe I truly fit into this definition - Freedom from assistance by others (parents and employer). I will make it soon!

The easiest way to begin framing this picture in your mind is to think of a typical day. Not a special day, where you do something you might only do occasionally, but an average day, one that would be filled only with what you'd be doing most days once you've achieved financial independence.

What time would you wake up?

Would you be awakened by an alarm clock or by your body's clock?

Once you arose, what would you do first? Second?

When and what would you eat?

What would be the main activity of your day?

How would you spend the evening?

What would determine when you went to bed?

What would your home look like?

What kind of vehicles would be a part of this typical day?

Spend a few moments in that daydream: in a typical day in your financially independent life.

Now ... are you really ready? Are you ready to make the changes to your present life that will allow you to achieve that kind of independence? After all, if no changes were necessary for you to achieve financial independence, you'd already be there.

If honesty forces you to admit your prospects for true financial independence are cloudy at best, then let's get on with figuring out how to blow those clouds away.

Ralph Waldo Emerson once said, "What lies behind us and what lies before us are small matters compared to what lies within us." What you have to determine is whether financial independence lies within you.

That's right ... you either have what it takes or you don't. You're either made of the stuff that yearns for selfdirection and self-support or you're not. Only you can examine the true you and answer this challenge.

In the late '80s I had to take the same inventory of myself. I had a growing business and was making great money. I had a beautiful house, fancy cars, and a private plane. Yet like most Americans, I was living up to the maximum of my income — and with the help of Uncle Visa and Aunt MasterCard, a little beyond it.

When I stared it right in the face, I knew my life was a house of cards and that when my working years ran out, I'd be in a real mess. Unfortunately, circumstances didn't even allow me that much time. My business was reselling another company's product, and when that company suddenly went out of business, it pulled us down with it.

My personal income dropped from really good to zero, almost overnight. That began the worst two years of my life. Panic-filled days, sleepless nights, relationship stresses, and the seemingly endless scramble to save my home and find another income source.

That nightmarish experience caused me to seek the true path to financial security and freedom. Not the hype baloney you read or hear from the pushers of what I call "The Solution Lies." Those are the people who tell you the answer to your problem is to make zillions of dollars — and you can do that by just buying their magical money-making scheme.

I knew there had to be a realistic system for achieving true financial independence. And I knew that such a system would have rules. Rules that are laws, like gravity.

Well, I found those rules. Once I did, the money map of my life sharpened from an indistinguishable maze to a clear route to my goal. I developed a plan for my life based on these rules and road signs, and I put that plan into action.

One year later, my wife and I had all of our bills other than the house paid off. Less than four years after that, the 26-year balance on the house mortgage was eliminated. And less than five years after that, we began living 100 percent off the proceeds from our investments. Working is now optional.

The incredible thing is that we accomplished all of this with the same amount of money we had been bringing home each month all along — our regular paychecks. If we had added more money into the system, we could have been out of debt faster and ended up with even more retirement savings.

In the process, I discovered that many of the central financial principles most people operate under are simply not true. I call these the Myths of Financial Independence. Disabusing yourself of these lies is an absolutely critical step on the road to wealth, freedom, and real peace of mind. I invite you to take that step right now:

Myth #1

You can use money the same way everyone around you uses it — and still end up financially independent.

The United States Department of Health and Human Services regularly conducts an extensive study of what happens to the average worker in this country by the time he or she reaches conventional retirement age (U.S. Department of Health and Human Services study). The pitiful results show that fully 95 percent of the people in this country DO NOT achieve financial independence by age 65, but rather they end up DEPENDENT on the government, or charity, or their families, or they have to keep working until they die. ninety- five percent. That's almost everybody!

These are working people just like you and me, people who went through their lives believing the myth that if they were just good employees and good consumers, they would be rewarded in the end. Instead, most of them end up struggling to survive on a Social Security check and/or a pitifully small pension. It isn't pretty. If you know anyone living on Social Security, visit with that person for a day and see if that's how you want to spend the "Golden Years" of your life.

The truth is inescapable. If you're using money like most Americans — buying things on credit, making monthly payments, trying to put away a few bucks each month, etc. — you're doomed to end up the same way they will: BROKE!

Myth #2

The responsible use of credit can enhance your financial well-being.

This may be the single most dangerous lie told to the American consumer. Only the merchants and the lenders benefit from your using credit. You DO NOT! All credit does for you is raise the price of the things you buy. And if you pay more for everything, over the years you'll be able to buy independence forever. You have to put in the most effort upfront. Then after a while, you can relax into a wonderful lifestyle and spend a lot less time and effort maintaining that lifestyle and income ... giving you time for your loved ones, hobbies, and maybe even dreams you have long since let go.

Reality #3

You must develop and maintain a long-term view.

If you hear yourself saying, "I really should pay off my debts and start building my financial independence fund, but there are a few more things I want first," translate that to, "I want to continue wasting my life, taking no action to build a better future, and I'll risk the consequences later."

If you live only for today's gratification and never really begin building a financially secure future — my estimate is that it'll cost you about $423 in lost future wealth every day you wait!

Reality #4

It takes more than a few weeks to build real financial independence.

My debt-freedom plan took just four years and seven months, and five years later I could live off my investments alone. That may seem pretty fast to you. But it did not happen overnight. I didn't find the goose that lays the golden egg. I just rerouted the money already moving through my life into a plan that allowed it to accumulate for my family's benefit, rather than the benefit of my creditors.

Beware of people telling you it can be done overnight. That's the lack of wisdom that feeds lotteries ... and lotteries are just a tax on people who don't understand statistics.

Getting rich does take some time. Accept that fact and you'll enjoy life more, while you get rich.

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Financial independence may not be possible by following the path you've been on up until today. But I am living proof that IT IS POSSIBLE once you shed the myths, embrace the realities, and really commit yourself to a sound, structured plan for achieving your financial goals.

Just think of what that kind of independence could mean to your life. No more pressure from bills. No risk of losing your home, car, or anything FEWER things than people making the same income as you who pay cash instead of using credit. So using credit will actually diminish your lifestyle, not enhance it. The people using cash will be able to afford a better lifestyle than you.

Consider this: The only true measure of wealth is net worth — how much you own MINUS how much you owe. So owing money on assets you supposedly "own," like your house or car, reduces your net worth, thereby reducing your wealth. The only way to really achieve true financial independence is to own everything in your life and owe nothing. That's real wealth.

Myth #3

Pay yourself first.

The false belief here is that you can carry a load of debt and otherwise use money like everyone else around you, as long as you first put a little aside in some kind of savings or investment each month.

The truth is that you should PAY ALL OF YOUR DEBTS OFF FIRST, and only then begin paying yourself. It's the only way to dramatically accelerate your journey to financial independence.

If you think about this, it just makes sense. When you pay off your debts first, you then need less to live on each month because you're only paying for food, utilities, taxes, insurance, and any other minor expenses, leaving you with a lot of savable money each month. So it will only take months instead of years to save up a sufficient emergency fund. After that, your retirement investments will build rapidly because you're funding them at a high level each month.

Creathwealth8888: I paid off my housing loan in 5 years. Read? Will You Try To Pay Off Your Housing Loan ASAP If You Have One? - Revisit

Myth #4

You can get out of debt by putting a little extra on each bill each month.

To effectively eliminate your debts, you have to use the military principle of "massing of forces." This means you concentrate all available resources on ONE debt at a time.

This way, you pay the target debt off quickly, thereby recovering its monthly payment, which you will then add to the amount you'll mass against the second debt, and so on.

A quick rule of thumb would be to pay off your debts in order of their outstanding balances, working from the smallest balance debt to the largest.

By doing this, the amount you have available to "invest" in your debts will actually accelerate after each debt is paid off and you recover what used to be its monthly payment.

Targeting debts by interest rate is not generally the best strategy.

Myth #5

You need to learn how to "manage" credit.

You need to learn how to ELIMINATE credit from your life. The idea of "managing credit" is like "managing a drug addiction." There's no such thing as a good way to "manage" something that's damaging to your well-being.

Once you're debt-free, you'll never need credit again. If you want to move up to a better house, you'll just sell the one you own free and clear — maybe take a little additional money out of your swelling investment account — and buy your new house with cash.

That's how it works when you eliminate debt. When you just manage debt, you stay in the 95 percent group along with all the other financial failures.

Myth #6

To be successful, you have to work "smarter not harder."

Everyone I've ever met who has achieved financial independence will tell you that — at least in the early days — you have to work smarter and harder. The price of success must be paid in full, and it must be paid in advance. There are no shortcuts.

This is particularly true if you're going to try to build a business, even a home-based business, as part of your financial independence plan. Building a business takes more work than a job, at least in the beginning. It also offers greater rewards than a job, both financial and emotional. But you should never be fooled into thinking that building a significant revenue stream can be effortless. If you see that kind of promise in a business's advertising literature, they are lying to you!

It takes hard work to achieve financial independence, which is probably one of the primary reasons why 95 percent of people don't do it.

Myth #7

It takes OPM (other people's money) to make money.

I know from experience that this is simply not true. I built a three-time Inc. 500 multimillion-dollar-a-year business starting with less than a $100 investment, working out of a spare bedroom.

The most dangerous result of this myth is when borrowers realize too late that the "other people" you borrowed the money from expect to be paid back — WITH INTEREST! Like most shortcut-to-riches illusions, using borrowed money to build financial independence frequently has the opposite result. It accelerates your financial ruin.

For every person who might succeed this way, a hundred lose their shirts ... and the houses those shirts were hanging in.

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Once you've freed yourself from these misconceptions and outright fabrications, you will have eliminated the major obstacles standing between you and a financially free future. The next step is to accept and commit yourself to a few basic, inescapable Realities of Financial Independence.

Reality #1

If you're not already financially independent — or well on your way — you must change your financial behavior to succeed.

There are only two ways you can leave this article — changed or resigned. CHOOSE TO CHANGE. It's really that simple.

Reality #2

You have to be willing to put forth effort.

The only place success comes before work is in the dictionary. But you don't have to work hard at achieving financial else, because you'll own it all. No more worrying about the financial implications of life's "what-ifs."

Being able to work if you want to, or not work if you don't want to. That's true freedom — and you deserve to be enjoying it.

8 Rules to break to build Wealth (Re-visit)

Revisit? 8 Rules to break to build Wealth

My money works harder for me (4)

Read? My money works harder for me (3)

Does my money need to work harder at all times?

Learn from the Wisdom of the Fisherman

When the tide is coming in, the fisherman may use all his available fishing rods and may even change to bigger hooks as rising tides may bring in more fishes and even bigger fish. The chances of catching fishes or bigger fish are high so don't spare the rods.

When the tide goes down, the fisherman will start rolling back his fishing rods and wait for the next high tide. When the tide is low, the chance of catching of bigger fish will be low; but the risk of getting your fishing hook and sinker get caught by the under-water obstacles is high and that may break your fishing line and lose your sinker. To replace them will cost you some money.

Read? The Best Secret in Investment and Trading – Compound Interest

Let me share the "Next Secret" to the "Best Secret of Compounding."


In order for the magic of compounding to work effectively for you, you must TRY to protect against losses at all times.


Read? The Greatest Lesson that I have learnt from my losses!

Understanding the Best Secret may not be good enough, you still need to understand the Next Secret and learn from the wisdom of the fisherman - you don't need to fish all times but go with the tides.

The hard truth is that preventing losses is as hard as making money in the stock market. Beware!

Use CPF or Cash to invest in stocks?

Assume we have more than enough fund in CPF investment account and in cash account (money that is not required in the next 5-7 years to ride out the next bear-bull cycle).

My friend actually asked this.

Interest-wise

Are you interest-wise? Current bank saving interest rate is around 0.X% and CPF OA rate is at 2.5%. Why would you spend the money that earns higher returns at 2.5% and keep the money that earns much lower returns at only 0.X%?

Then you argue that cash is more useful and can buy things leh. But, didn't I told you that one should come to stock market with money that is not required in the next 5-7 years to ride out the next bear-bull cycle.

When the mind is calm, you may invest with ease and in better position to ride out the next bear-bull cycle - Createwealth8888

Money in your pocket

Just for Laugh!

In trading or active investing, it is not wrong to take partial or full profits when market condition indicate so.

We call this profit-taking action -  "money in your pocket." It always feel good. Guess what? I actually came cross this Yiddish Proverb.

"With money in your pocket, you are wise and you are handsome and you can sing well too."

Client sues SocGen over his 'missing millions' here

Createwealth8888: In forex, losses can be really huge due to its nature of high leverage being used


Read? Investor to pay $1.6M to bank after losing lawsuit.

By GRACE LEONG


(SINGAPORE) For years, two relationship managers assured a client that his investment portfolio was doing well and that he had a balance of around $8 million in his account.

In fact, the net value of the investment account stood at only $252,652 on Aug 12 this year. The rest had been frittered away by the relationship managers at Societe Generale Bank & Trust in Singapore because of alleged unauthorised forex trades, according to a lawsuit filed at the Singapore High Court yesterday.

To cover up the losses, they fed the client with bogus statements, the lawsuit claimed.

My money works harder for me (3)

Read? My money works harder for me (2)

How do I know my money is working harder for me?

One way to measure your portfolio value using CAGR.

CAGR measures the productivity of money. Productivity is the highest when it generates the most dollars in the least time or basically it is the financial returns over the investing time units that really counts.

Expected CAGR can be different during Building Wealth and Growing Income phase.

During building wealth phase, we may need more aggressive CAGR like at least 1X% and above but later slowing it down to high X% during Growing Income phase.

My money works harder for me (2)

Read? My money works harder for me

Why make my money works harder for me?

It is not to keep up with inflation; but to accumulate enough wealth so that I can reach Financial Independence stage.

When someone is financially free, they will have less to worry on money matters and then can experience life with less concern and pressure and can avoid participating in the Rat Race.  

Isn't that wonderful?
 

Biosensor - How nice!

Read? Biosensors founder allays fears over share sale

 18.2 per cent stake in Biosensors International at 88.88 cents apiece.  It means that I have found a new TouchStone at $0.655

Biosensors founder allays fears over share sale

Chinese investor has wide knowledge about pharma industry, he says


By LYNN KAN

YES, he and his affiliates have sold their 18.2 per cent stake in Biosensors International to Chinese private equity firm Hony Capital, but chairman Lu Yoh Chie tells BT that he has no intention of relinquishing his role in the stent-making company that he had built from scratch in 1990. And he also has his reasons for selling the shares at 88.88 cents apiece.

Mr Lu: 'When we did the calculations of the 45-day average price, it came up to 88.88 cents. So I said, 'Eight is a lucky number, let's do it'.'

'Maybe I don't think like how ordinary people think. I'm not driven by money and I didn't think that I was selling to lock in a profit,' said Mr Lu. 'I was driven by principle and the match was compatible.'

In fact, he's moving back to Singapore from the US to concentrate on the Asian market more intently. 'I'm going to be spending most of my time in Asia, and to do so I'm moving here, although I've never really left, because I'm a PR here.'

Mr Lu's divestment has created some jitters on the market. An announcement on the Singapore Exchange website after midnight on Monday made known that he and affiliates sold their more than 197 million shares to Autumn Eagle, Hony Capital's special purpose investment vehicle, at 88.88 cents apiece, against a market price then of about $1.00.

Though the announcement stated that Mr Lu would stay on as chairman of the company, the market reacted almost instantaneously on the news of Mr Lu's divestment.

In a reversal of Monday's gain of 8 per cent to $1.08, Biosensors' shares shed 4 cents on Tuesday to close at $1.04 on the uncertainty that Mr Lu's divestment created.

A Web conference was called yesterday at 5.30pm, and investment firms Nomura, DBS Vickers, OCBC, Credit Suisse and Lim & Tan Securities phoned in to gain reassurance from Mr Lu himself, who was in Singapore.

In an interview with BT yesterday, Mr Lu said that the deal was made in the best and long-term interests of the company.

'There are limitations to what I could do for Biosensors. The company has grown beyond my capabilities. Not that I am leaving or quitting in any way. I just decided that it's time for some new blood.

'For a biotechnology company, you not only need the right talent, the passion and great ideas,' he said. 'But you also need deep pockets, otherwise the funding for the idea will dry up.'

Hony Capital was Biosensors' most genuine and persistent pursuer. 'It followed the company for more than six months. It's a well-known private equity firm and it has extensive knowledge about the pharmaceutical industry. And most importantly, it was upfront and honest,' he said.

He also said that he didn't entertain other interested parties in the same way he did Hony, although there were such parties over the years. 'I think I didn't shop around in that sense. It wouldn't have been a respectful thing to do.'

As for why he sold his stocks at a discount to the market price, he said the price was committed out of fairness to Hony and also, out of superstition. 'When we began discussions more than six months ago, the price was in the 60 to 70 cent range, never more. But it was only recently that the share price shot up. I wanted to be reasonable and equitable so we tried to strike a good balance. I always like a win-win.

'So, when we did the calculations of the 45-day average price, it came up to 88.88 cents. My birthday is Aug 8 and I was married on the same day. So I said, 'Eight is a lucky number, let's do it.' They liked it too. It was meant to be.'

Hony Capital has had prior experience in aiding similar biotech companies and, according to a report by Nomura, has invested in at least three in China.

With Biosensors focusing on gaining a larger market share in China with its 50 per cent joint venture, JW Medical Systems, Hony Capital is coming on board at the right time to lend its financial strength and expertise.

Mr Lu says he will continue as chairman of Biosensors for as long as he can. 'Biosensors is like the son I never had. But Biosensors needs to seek new adventures, needs to continue to build. There are new opportunities to explore and I believe that it's the right time for Hony, myself, the management team and shareholders to address an exciting market.'

Biosensors shares recovered some lost ground yesterday, adding 2 cents to end at $1.06.

Seoul Homeowners Watch Prices Sink Even as Economy Soars

By Shinhye Kang and Bomi Lim

Yoon Jae Kwang sidestepped the global financial crisis by selling all of his mutual funds after 100 percent returns to buy an apartment outside Seoul in 2007. Three years later, the housing market has slumped and Yoon faces a loss on his investment.


The 112-square-meter (1,200-square-foot) home, which jumped as much as 16 percent from the purchase price of 320 million won ($280,000) in just a year, has dropped 22 percent in value from the peak. Yoon can’t find buyers for the apartment in Yongin, 49 kilometers (30 miles) south of the capital, to pay off the 80 million won he borrowed to help pay for it.

“I am stuck; you know the price will drop more for at least another couple of years, and yet you can’t do anything about it,” said Yoon, 34, who works at a software development company in southern Seoul. “What happens when the time comes for me to pay off my debt?”

Yoon’s difficulties reflect his government’s success in cooling the market, while property prices soar in Hong Kong, China and Singapore. In Korea, government efforts to forestall a property bubble and rein in record household debt have damped prices and sent consumer sentiment to a 14-month low in September.

Apartment prices in the Seoul metropolitan area have fallen 2.7 percent so far this year, the first decline in six years, according to data from Kookmin Bank, South Korea’s biggest lender. The number of unsold new apartments in Seoul has increased 16 percent, while existing apartment sales slumped 59 percent below their average of the past four years, according to the Ministry of Land, Transport and Maritime Affairs.

Hong Kong, Singapore

Home prices are up about 15 percent in Hong Kong in 2010 and jumped 38 percent in the 12 months to the end of June in Singapore. China’s property prices rose 9.3 percent in August from a year earlier, even as officials crack down on speculators and multiple home purchases.

In South Korea, the declines come even as the economy bounces back from the global financial crisis with forecast growth of 5.9 percent this year. The Bank of Korea raised its forecast in July from 5.2 percent predicted in April.

The central bank will closely monitor inflation, Governor Kim Choong Soo told reporters today after keeping the benchmark rate at 2.25 percent, which he said some board members opposed.

“People are saying the stock market is booming and companies are enjoying record earnings,” said Jeong Ai Nam, a local realtor in southern Seoul. “The housing market, it’s a totally different story. Demand has dried up.”

Debt-to-Income

Apartment prices in Seoul had increased 3.2 percent between January and September last year, according to Kookmin Bank, as a $52 billion stimulus package and record-low interest rates spurred demand. Bank lending to households expanded in June last year by the most in more than two years on demand for mortgages.

To stem the surging household borrowing, the Financial Supervisory Service in July 2009 said buyers of homes worth more than 600 million won could borrow only as much as 50 percent of the property’s value, down from 60 percent previously. Then in September, the government tightened debt-to-income rules, allowing banks to extend no more than 50 percent of a borrower’s annual income to purchase homes in Seoul and 60 percent in Incheon and Geyonggi provinces near the capital.

Apartment prices and sales then started their slump, prompting the government of President Lee Myung Bak to ease some of its curbs this year. On Aug. 29, Lee’s administration announced a seven-month exemption to the 50 percent debt-to- income rule in Seoul, while leaving it in force in three southern parts of the capital -- Gangnam, Seocho and Songpa -- that it deemed “speculative zones.”

Speculative Zones

The 60 percent limit imposed outside the capital has also been suspended until the end of March, and a nationwide waiver on taxes for home sales was extended until the end of 2012.

The changes have yet to spur property transactions because buyers are concerned prices may fall further, said Cho Min Yi, head of research at SpeedBank, a housing consulting company in Seoul.

“It’s all about sentiment,” said Cho. “You can’t expect the property market to recover soon while people stand pat.”

The government may not be able to take further action to boost the market as it remains concerned about overheating prices and household debt levels, Cho said.

South Korea’s household debt jumped 20 percent to a record of 754.9 trillion won at the end of June, from the end of 2007, according to the Bank of Korea. Home loans increased to 349 trillion won, up from 293 trillion won in 2007.

This makes South Korean consumers’ debt as a percentage of their income higher than that of the U.S. and Japan, according to Moody’s Investors Service.

‘Nightmare’

“The high indebtedness and vulnerability of households to a rise in interest rates are further increasing the downward pressure on housing prices,” Moody’s said Sept. 7.

Banker Lee Gi Do bought an apartment in southeastern Seoul for 450 million won last year and within a week his agent offered him 7 percent more to sell the property. A year later, the apartment’s value has dropped almost 10 percent below the purchase price and Lee can’t find a buyer.

“My dream’s become a nightmare,” said the 33-year-old. “Far from making money, I may struggle to pay my monthly interest bill if the central bank raises rates more.”

The stagnant property market also has forced South Korean builders to restructure debts after the construction industry shrank 0.9 percent over the three months through June, the third drop in four quarters, according to the Bank of Korea. The decline contrasts with 1.4 percent growth in South Korea’s gross domestic product in the period.

Bad Loans

Combined second-quarter profit at local lenders including Kookmin Bank dropped 34 percent from a year earlier after they set aside extra loan-loss reserves to help construction and shipbuilding companies restructure debts, the Financial Supervisory Service said on Aug. 3.

Moody’s expects a surge in credit losses from the construction industry, which will weigh on Korean bank earnings, the credit rating company said.

The household loan delinquency ratio for South Korean banks rose to 0.78 percent in August from 0.48 percent at the end of last year and soured mortgage loans almost doubled to 0.64 percent from 0.33 percent.

The average cost of leasing an apartment is on the rise in the Seoul metropolitan area as potential buyers are favoring renting for now amid concerns of further declines in home prices. Rents in the nation have jumped 4.4 percent so far this year, the biggest gain for the first three quarters since 2002, according to Kookmin Bank.

Household Income

“It’s a typical bottleneck as people are delaying buying a home and rushing into the leasing market,” said SpeedBank’s Cho.

Still, software developer Yoon says he will hold onto his Yongin apartment for now.

“You always hear about how real estate is where the big players invest their money in Korea; that you never go wrong with property,” Yoon said. “That may have been true for my parents’ generation, but not mine.”

-- With assistance from Saeromi Shin in Seoul. Editors: Brett Miller, Andreea Papuc

Many faces of Bull and Bear

Just For Laugh ....

• Bullish Bull:     Close to 100% in stocks
• Bearish Bear:  Close to 100% in cash
• Bearish Bull:   More stocks than cash
• Bullish Bear:   More cash than stocks
• Bo Pian Bull:  Too many losing stocks and can't sell
• Bo Chap Bull: More dividends are coming. Never mind the market

I am Bearish Bull!

How about you?

BIOSENSORS COMMENTS ON CHANGE IN EQUITY OWNERSHIP

Singapore 13 October 2010 - Biosensors International Group, Ltd. (“Biosensors” or the “Company”, Bloomberg: BIG SP) today commented on a recent announcement from Hony Capital and Mr. Yoh-Chie Lu, Biosensors Chairman.

On October 10, 2010, Hony Capital, through its wholly owned special purpose vehicle, Autumn Eagle Limited, entered into Sale and Purchase Agreements to purchase a total of 319,311,200 shares of Biosensors common stock, representing 29.47% of Biosensors outstanding shares. Included in the shares purchased by Autumn Eagle is the 18.2% ownership stake of Biosensors’ current largest shareholder, Chairman Mr. Yoh-Chie Lu and his affiliates. Mr. Lu will continue in his current role as Biosensors’ Chairman of the Board. The shares will be sold at a price of $0.8888 per share, after taking into consideration the average price of the shares of Biosensors traded on the Singapore Stock

Exchange for the 45-day period prior to the date of Sale and Purchase Agreements.

Mr. Jeffrey B. Jump, President and CEO commented, “We believe that these recent events position Biosensors for a very exciting future. We retain the experience, vision and leadership of Yoh-Chie Lu, who will remain our Chairman, and we have gained a new partner who will be instrumental in our future growth and development, particularly in the Asian markets, including China.”

Wilmar says no major impact from moratorium

SINGAPORE/KUALA LUMPUR - Wilmar International, the world's No 1 palm oil firm, expects Indonesia's proposed two-year ban on clearing forests to have a limited impact on its operations as land available for oil palm estates is ample.

Singapore-listed Wilmar's stand run counter to many palm oil and mining firms who fear the moratorium - part of a US$1 billion deal with Norway aimed at fighting deforestation and carbon emissions - will curb expansion and future earnings.

Wilmar's head of corporate social responsibility Jeremy Goon said oil palm concessions only cover 3.2 per cent of Indonesia's land mass but contribute 70 per cent of total agriculture activity in the Southeast Asian country.

'We understand there is sufficient non-forest degraded lands in Indonesia to accommodate and support the growth of the plantation businesses,' he told the Reuters Climate and Alternative Energy Summit.

Under the deal with Norway, the moratorium would apply from the start of next year but exactly which areas of forest will be covered remains unclear, unsettling investors.

Senior Indonesia officials have raised the idea of land swaps to help palm oil firms expand on land already degraded but the question of who pays for this remains unsettled.

Mr Goon said Wilmar would abide by any regulations that governed land swaps if such rules were drafted.

Indonesia is under international pressure to slow deforestation and the destruction of peatlands, which release vast amounts of planet-warming greenhouse gases when cleared or burned.

Wilmar also faces an uphill task in ensuring its palm oil supply comes from third-party estates that have not illegally cut down forests or drained peatlands to expand, he said.

'Not the palm oil police'

Less than half of the palm oil the firm trades comes from its own subsidiaries, Mr Goon said.

But unlike companies such as Malaysian-listed planter IOI Corp, which recently excluded an Indonesian supplier over concerns of deforestation, he said Wilmar usually engages with errant planters to help them become more eco-friendly.

'First of all, we are not the palm oil police,' Mr Goon said.

'If the Roundtable on Sustainable Palm Oil (RSPO) either suspends or terminates a member that would prompt us to review our relationship with the company,' he said, referring to industry-driven body tasked with certifying planters.

Mr Goon, an RSPO board member, said Wilmar planned to expand its investments in cutting carbon emissions and would spend between US$12 million and US$15 million in 2010/11 on projects around East Asia.

A total of 18 projects were at various stages of development.

The company already had six projects registered under a UN-backed clean energy scheme that rewards investors with tradeable carbon offsets and focused on capturing methane, a powerful greenhouse gas, by treating palm oil mill waste water.

He said projects developed or planned also included burning palm biomass and rice husk waste in boilers to generate power, cutting fuel bills and reducing emissions.

'There are quite a few in process now and we will be rolling out a number for the next five to 10 years,' he added.

He also said the industry was far different than it was a decade ago, with clear rules and standards under the RSPO and other bodies.

Green groups have targeted palm oil and logging firms for cutting down large areas of forest, destroying pristine rainforests brimming with plant and animal species.

But he said firms under the RSPO must complete detailed assessments of any pockets of forest with a high conservation value in plantation concessions. Social impact assessments were also crucial before development of any lands.

'The lands that are normally awarded by governments to palm oil companies are usually degraded, logged-over secondary forest. They usually only give pristine rainforest with commercially viable timber to logging companies and that's just the way it is,' he said. -- REUTERS

Is this worth my time and effort to trade? (3)

Read? Is this worth my time and effort to trade? (2)

Let me now look at newer touchstones that are meant for longer-term holding (i.e. investing)

CAGR

CAGR for the respective newer touchstones with their holding years are as follows:

As of last Yesterday closing price:

1. Noble: 79.8%, holding for 1.80 years
2. DBS:   37.1%, holding for 1.75 years
3. Olam:  36.4%, holding for 2.03 years
4. NOL:  34.0%, holding for 1.24 years
5. CPL:   27.6%, holding for 1.49 years
6. BSS:   25.5%, holding for 2.17 years
    

Let me normalize these touchstones at portfolio level and assuming the longest holding years i.e. 2.17 years,

CAGR (Investing) = 29.8%, holding for 2.17 years.


In conclusion

1. CAGR (Trading)    = 21.0%, holding for 2.07 years
2. CAGR (Investing)  = 29.8%, holding for 2.17 years

In conclusion,  my personal investing and trading performance result doesn't show me any significant differences in financial gains between short-term trading and long-term investing.

So how? Any suggestions?

Sembcorp Marine wins S$351 mln FPSO conversion job

SINGAPORE - Sembcorp Marine, the world's number two oil rig maker, said on Tuesday it has secured a contract worth around S$351 million (US$268.6 million) to convert a tanker into a floating production storage and offloading (FPSO) vessel.

Is this worth my time and effort to trade? (2)

Read? Is this worth my time and effort to trade?

Since Nov 08 after I have changed my trading strategy and assuming that I have rebuilt an entire new portfolio with the recovered capital. How am I doing?

Active Re-Cycling of Capital

1. Number of days since Nov 08: 756 or 2.07 years
2. CAGR: 21.0%

Time and market cycles matters. Let see at the next Bear.

Keppel Seghers secures S$341m contract in UK

SINGAPORE : Mainboard-listed Keppel Corp said its subsidiary Keppel Seghers has secured a S$341 million contract in the United Kingdom.


The engineering, procurement and construction contract is for the second phase of the Greater Manchester energy-from-waste project and was awarded by Viridor Waste Management.

Keppel said it will provide proprietary energy-from-waste technology to build a plant called Runcorn II.

Expected to be completed between 2014 and 2015, the plant will have the capacity to treat up to an additional 375,000 tonnes of solid recovered fuel per year derived from household waste.

The new plant will be integrated to an existing plant, Runcorn 1.

The combined plants will have a total capacity to treat 750,000 tonnes of waste per year, and generate 70 mega watts of electricity and 51 mega watts of heat.

Keppel said the contract is not expected to have an impact on the firm's earnings for the current financial year.

- CNA/al

Biosensors up 10% on Autumn Eagle's interest

By LYNN KAN


Stent maker Biosensors International Group announced that Autumn Eagle Limited bought just over 312 million shares, a 29.47 per cent stake in the company.

After the announcement, Biosensors shares started gaining and reached $1.10, an increase of 10 per cent from Friday by mid-day.

The investor in question is said to be a China-based private equity investment firm, and is said to be a strategic investor.

An analyst contacted by BT said that it is too early to say if Autumn Eagle is preying on Biosensors as an acquisition target. He said it was typical for private equity firms to first cultivate good working ties with the management team before proceeding further.

Though little is known about Autumn Eagle at this point, he noted that the investment bodes well for Biosensors. 'The investment's advantageous for Biosensors, since it has a presence in China.'

Is this worth my time and effort to trade?

$64K Question - Invest or Trade?

Is this worth my time and effort to trade?

Any answer?

From the above net ROC per Trade distribution chart, 

I only take profits at minimum of 3% net ROC or more; 

but half of them are between 6 - 10% net ROC.

So what is the performance rating like? Any ideas?

Eagle preys on Biosensor? Lau Ying lai liao!

On 10 October 2010, Autumn Eagle entered into various sale and purchase agreements (“SPAs”) with seven vendors in total whereby the vendors agreed to sell and Autumn Eagle agreed to purchase, on the terms and conditions set out in the SPAs, 319,312,200 issued ordinary shares in the capital of Biosensors (the “Sale Shares”), representing approximately 29.47 per cent. of the issued share capital of Biosensors. The consideration for the Sale Shares was arrived at after taking into account the average price of the shares of Biosensors traded for the 45-day period prior to the date of the SPAs.

Follow the right person?

Read?Your First $100K realized profit from the stock market? - (2)

Super Mum once mentioned that she has "Huat" (successful) in her investing journey because she follows the right person. The Right person? I didn't think so. What I did know that she didn't really follow anybody; but I think she probably did one thing that leads her to success i.e.

She CAME, HEARD IT, SAW IT and BELIEVE IT!

Similarly, Piggy came for an answer - HEARD IT and BELIEVE IT! she is now happily loading up lorry load of "lunchboxes".


Believe not?

There are still some who choose not to believe it. If you believe you can't. You can't! (not the same as the other way round hor)

I am not a trader!

I am not a trader!

I am a true investor who happened to do Capital Re-Cycling at a faster pace!

I don't own stocks. I lease them!

When do you own a stock?

When you paid for a stock with no intention to sell it for profit at the near future; then you can be thought of owning a stock.

When do you lease a stock?

When you paid for a stock with a definite intention to sell it for profit at the near future; then you can be thought of leasing a stock.

So I don't own stocks; I lease them.

Getting Married?

Someone said: "Getting married - the best part is that you will have the power of 2 in your saving endevours."

Hmm.. how about the expenses part? May be power of 0.X increase?

For guys, getting married could mean that you may have some "extra" expenses  (Red and White matters in Hokkien) coming in as you now have MORE relatives; and may also get into the other family costs sharing matters (e.g. parental care such as nursing home cost).

Why? Son-in-laws are expected to contribute to the costs sharing matters especially when your wives are very generous.

Guys, beware!

Credit card bad debt written off by banks up 59%

SINGAPORE: Bad debts written off by banks for credit and charge cards went up from about $115.4 million in 2008 to $183.9 million last year, a rise of nearly 60% in a country with only 1.2 million credit card holders.


The reason for this, observers say, is due to the financial crisis in 2008.

"As people's income get impacted, they lose their jobs...they start to draw down from their savings, and then their credit card limit, and then as a result, their debt will start to increase, before you know it, they get into trouble and they get into difficulty in paying, so you will see the spill over in 2009," said Kuo How Nam, president of Credit Counselling Singapore, a charity dedicated to credit counselling and debt management.

As the economy bounces back to health, the financial status for most of the credit card holders in Singapore have also improved, with statistics indicating that Singaporeans are paying back faster despite spending more this year.

The proportion of those who do not pay on time has also gone down.

"The delinquency rate has actually been dropping, so at this point in time, we are seeing a delinquency rate of 4.95%...so this is an improvement compared to previous years," said Ms. Lily Tay, business development manager with Credit Bureau Singapore.

While the number of people seeking help at Credit Counselling Singapore nearly doubled from 2008 to 2009, numbers have stabilised since, with about 745 people for the first eight months of this year compared to more than 1,200 people last year.

According to Credit Counselling Singapore, based on the current trend, the estimated number of people seeking help this year may be around 1,118 which is slightly lower than the total of 1,285 in 2009.

Credit Counselling Singapore says its records have also shown that as more younger consumers acquire credit cards, the roll over amount will continue to rise as the younger generation tends to spend rather than save.

Observers say there's still room for banks to exercise greater responsibility when educating consumers on the use of credit cards or managing their credit card debt. For example, being more transparent about charges or fees incurred.

-CNA/ac

Meeting Parents?

This young man bought his own fruits - his girl-friend's parents favourite fruits and have them wrapped up a gift for meeting her parents.

Learning it form Korean drama series? LOL

A cost-effective and healthy choice. Hopefully the gf's dad is not expecting two bottles of fine Red wines.

I want to be richer but .... (2)

Read? Self imposed limits: LP shares

Read? I want to be richer but ....

"I think for those who think they are not the privileged ones to save 500k, they should really scrutinize their limiting beliefs and break as many of them as possible. Test the limits of your boundary by taking small steps; you might find that these boundary cannot and will not restrict you if you do not wish them to do so." - LP

"The journey will definitely be accompanied by naysayers. People who say it cannot be done should not interrupt those who are doing it." - LP

Wise words. I think I should share it further ....  Concepts, Believe, and Goals

Future Saving - Get Real!

Unless you don't get married or get married but no kids or get married with only one kid; and besides that also don't get caught in between needy parents at the top and hungry kids at the bottom.

I know what I am talking as I was there before with a single income to support a penniless father and a wife with three growing kids. More saving is practically out! As parents, we may find it extremely difficult to squeeze out expenses on our growing kids to increase savings.

An alternative is to increase earning by:

Look for a better paying job?
Work harder like a Rat in the office to try to move up the corporate ladder?

These are the options until one day I fully understood the Concepts.

Understanding Concepts

Read? Money Mind and mindset (Re-visit)

Believe
 
Read? Your First $100K realized profit from the stock market? - (2)

Read? Earning More Than Your Boss?

Read? Freedom at 44

Read? Retire young, retire rich

Unlike some of you, every month or at least every year you still have fresh capitals coming in for investment but I don't. I really have little fresh capital incoming in other than those coming from CPF investment account. So my only hope is to compound my gains in the stock market.

Goals

Not much use even if you can fully understand the concepts and strongly believe it but without setting realistic Goals and track it; it may be harder to make it!

Read? Goals - Part 2

Read? Your Personal Investment Goals

Top 5 Tips to Build Wealth and Success

By Peter Gorenstein and Farnoosh Torabi

Warren Buffett is worth $45 billion. That wealth isn't only a factor of savvy investing and good business — the "Oracle of Omaha" is also known as a penny pincher. Buffett still lives in the same Omaha, Neb., home he bought in 1958 for $31,500.


Follow his frugal formula, and you too may wind up with a lot more money than you ever dreamed.

This week Financially Fit covers five tips to build wealth and success.

1. Live Below Your Means.

Being wealthy isn't just a product of your salary or investment prowess; it's learning how to save.

"We can make a lot of money, you can make a little bit of money, but the second you spend all the money is when people get into trouble. Saving is the key to preserving your wealth," says Ed Butowsky, managing partner of Chapwood Capital Investment Management, a firm that manages money for wealthy individuals.

As many Americans realized during the booming real estate market, just because you think you can afford something doesn't mean you should buy it. Keeping an eye on your bottom line will pay dividends over the long term.

2. Bounce Back From Defeat


With nearly 15 million workers unemployed right now in the U.S., it's easy to get discouraged. Don't! Most successful and wealthy people have overcome obstacles and failure along the way. Steve Jobs was ousted from Apple when he was 30. Today, he's a billionaire and a legend. Plus, after getting fired, he created another billion-dollar media company, Pixar.

"Bouncing back from defeat is something all great achievers have. They have this undying belief good things will happen and will continue to happen," says Butowsky.

Take Michael Jordan. "His airness" was cut from his high school basketball team. Motivated by the rejection, Jordan became a star the next season. The rest is history.

3. Self-Promote

Regardless of the profession, the rich and successful tend to have a strong sense of self-worth — key to skillfully navigating an upward career path. Mark Hurd, who was ousted as CEO of Hewlett-Packard in August, couldn't be kept down for long. Using his business skills and connections, in September, Hurd was named president of Oracle. (Hurd and Oracle founder Larry Ellison are known to be close friends.)

4. Have Street Smarts

Bernie Madoff lived the high life for decades, scamming unsuspecting clients, with a money-making formula that proved too good to be true. Only afterward did we learn that with a little due diligence, most clients could have easily uncovered the fraud.

But it's not only the swindlers and the con men you have to watch out for. Many times, friends and family take advantage of the rich. Whether it's a handout or an investment idea, Butowsky advises his high net worth clients that in most cases, it's wisest to just say "no." The best way to do that: have someone else do it for you.

"You need to really set up a wall between you and your family," he advises. "If you don't want to give them (family or friends) money ... saying no is probably a good idea."

5. Buy Cheap

The rich can afford to splurge, but that doesn't mean they do.

John Paulson, a billionaire hedge fund manager, bought his Hamptons "dream house at a bargain basement price," according to Greg Zuckerman, author of the Paulson-based book, "The Greatest Trade Ever." The story has it that Paulson eyed the home while it was in foreclosure. Finally, on a rain-soaked day, he purchased the home on the Southampton town hall steps. He was the only bidder.

On New York City's Upper East Side, Michael's— The Consignment Shop for Women— has been a bargain-hunting destination for more than 60 years. "We have a good percentage of women who can afford to shop on Madison Avenue but really like the idea of saving that money," says proprietor Tammy Gates.

From Chanel to Gucci and Louis Vuitton, the store specializes in high-end designer merchandise for a reasonable price. Speaking of her clientele, Gates says, "they're wealthy for a reason. They recognize that bargains keep people wealthy. Paying top dollar when you don't have to doesn't make sense."

My War Room (2)

Read? My War Room

Mission 2009 Completed . 100% Hits rate with no casualty.

Finally the last commando has returned to the base camp safely after spending 427 days trapped in the Property Jungle.

427 days is the worst holding days so far!

Mission 2010


Most of the Commandos sent in Mission 2010 have returned safely to the Base Camp except for the last one man still taking cover under Noble fire.

Missions Result

ROC: 3.1% - 34.3%

Holding days: 1 - 427

Mean ROC: 10.8%

Mean Holding days: 85

CPL - Sold ROC 11.0%

Round 16: ROC 11.0%, 427 days, B $3.78 S $4.22 (Bought back much higher)


Round 15: ROC 6.4%, 4 days, B $3.10 S $3.32
Round 14: ROC 9.5%, 266 days, B $3.00 S $3.30 (Bought back higher)
Round 13: ROC 21.9%, 17 days, B $2.01 S $2.46

Noble - Sold $1.98 ROC 5.4%

Hope to gather more feathers for a thin, foldable mattress soon ...


Round 12: ROC 5.4%, 190 days, B $1.87 S $1.98 (Price has been adjusted after XB)

Round 11: ROC 10.1%, 45 days, B $3.04 S $3.37
Round 10: ROC 6.5%, 20 days, B $3.07 S $3.29 (Bought back higher)
Round 9: ROC 5.7%, 74 days, B $1.71 S $1.82 (Bought back higher)
Round 8: ROC 34.3%, 100 days, B $0.96 S $1.30
Round 7: ROC 5.7%, 10 days, B $1.02 S $1.09
Round 6: ROC 3.8%, 1 day, B $1.01 S $1.06
Round 5: ROC 12%, 27 days, B $0.965 S $1.08, (2nd Half)
Round 4: ROC 14%, 8 days, B $0.965 S $1.11, (1st Half) - Bought back higher
Round 3: ROC 7.1%, 8 days, B $0.830 S $0.895
Round 2: ROC 31.6%, 20 days, B $0.800 S $1.05
Round 1: ROC 16.3%, 28 days, B $0.910 S $1.08

Sembcorp Marine wins US$364 mln contract

SINGAPORE - Sembcorp Marine, the world's second-biggest oil-rig builder, said on Tuesday its subsidiary secured two US$364 million contract to build two jack-up rigs with options for another 3 from Houston-based Atwood Oceanics Pacific Ltd. -- REUTERS

What if the next Great Bear come?

Are multi-baggers safe from the next Great Bear Raid? Of course not!

Let me share my observation of two guys who both have multi-bagger.

Guy A holds a multi-bagger - Kepland. He is happily holding it and takes no further actions to strengthen the holding position.

Guy B holds a multi-bagger - Midas. He is not just holding it; but whenever the market provides him opportunity he will trade some positions on Midas to build up realized profit against his holding position. Besides that he also have his capital reduction plan in place since he thinks that the market has already reached a high level.

Do you think who is more at risks of either losing part of his capital or seeing his paper profit disappeared when the next Great Bear returns? Guy A or Guy B?

I want to be richer but ....

I want to be richer but ...

• I also want to laze on weekends so the idea of earning more money by giving private tuitions and becoming part-time insurance and property agents are out.
• I also don't like to join the rat-race in the office

So how?

I did this: Work for money? Forget it. - Revisit

My money works harder for me.

Powered by Bulls and provided by the Bears.



Join me?

吸金大法 - 常賺不如大賺(胡立陽)

常賺不如大賺  = 股神 = Multi-bagger = Get a few multi-baggers are far better than winning here and there.

Retail investors set to make big comeback

ST, Monday, Oct 4, 2010

Some points to note ....

• One dealer said in the past few weeks, he had been hit by a flood of phone calls and e-mail messages from clients wanting to reactivate their trading account.
• The strategy they adopt is to buy shares each time there is market correction, and so far, it appears to be working.
• It is very short term. Buy on dips and sell on strength. But it is good income for dealers, as the market volume swells.

Party time! Welcome on board.

Read? The Bandwagon Theory: A Glimpse At How The Market Really Works?

See who jump off first?

Saving Interest Rate at 0.1%

For your extra cash not needed for the next 5 years, the option of more saving is out as inflation of up to 3% will definitely kill off your cash holding in the bank.

Now, you may be forced to take more risks to invest in either retail bonds to get lock up for X years in Return of Capital or invest in dividend yielding stocks but uncertain of Return of Capital or Returns on Capital.

Be extra careful of your friendly financial advisers or bank relationship managers offering you Capital Protected or Structured Products. During the era of low interests rate, it is their harvest time.

You may have to determine for yourself which is the least Evil of All.

Technical Indicators? (2)

Read? Technical Indicators?

Read? Who Moves My Market?

Read? Which Theory of Market Behaviours to believe?

Technical Indicators are Good?

The problem with most technical indicators is that they tend to have adjustable parameters. Some even have 2-3 parameters to adjust.

More often or more, we tend to keep adjusting these parameters and do some back-testing on our favourite stocks until we manage to "fool" ourselves that we got a "right" system.

But after a series of losing trades, you may begin to realize that the "right" system doesn't seem right anymore. You may then turn to the "Guru" who may have previously give you the ideas on these indicators for help.

The Gurus always will have some "useful" feedback or suggestions for you to re-adjust the parameters and to fine-tune the system and you are back to do more back-testing to get another "right" system.

Sound familiar, right? You like MACD and ADX. Me too. There are three parameters to adjust and have fun. But, I have stopped doing it for quite sometime.Good luck!

China to the Rescue! Wen Offers to Buy Greek Bonds

By: Reuters


China offered on Saturday to buy Greek government bonds in a show of support for the country whose debt burden triggered a crisis for the euro zone and required an international bailout.

Premier Wen Jiabao made the offer at the start of a two-day visit to the crisis-hit country where he says he expects to expand ties in all areas.

"With its foreign exchange reserve, China has already bought and is holding Greek bonds and will keep a positive stance in participating and buying bonds that Greece will issue," Wen said, speaking through an interpreter.

"China will undertake a great effort to support euro zone countries and Greece to overcome the crisis."

Greece needs foreign investment to help it fulfill the terms of a 110 billion euro (US$150 billion) bailout. This rescued it from bankruptcy in May but also imposed strict austerity measures, deepening its recession.

Greece, which has been raising only short-term loans in the debt market, has said it wants to return to markets some time next year to sell longer-term debt, although the EU/IMF package llows it to wait until 2012.

"I am convinced that with my visit to Greece our bilateral relations and cooperation in all spheres will be further developed," Wen told Greek Prime Minister George Papandreou earlier in the day.

Greece and China pledged to stimulate investment in a memorandum of understanding and private companies signed a dozen deals in areas like shipping, construction and tourism.

"Our two countries, both historical and modern, have to strengthen our relations in all sectors, to move on and overcome present difficulties," said Wen, speaking through an interpreter in televised comments.

The investment memorandum does not target specific investment volumes, an official close to Investment Minister Harris Pamboukis said ahead of Wen's visit.

"We want to build this strategic partnership with China," the investment ministry official said. "The purpose is not a signature on something big."

China has said it needs to diversify its foreign currency holdings and has bought Spanish government bonds. In January, Greece denied media reports it planned to sell up to 25 billion euros of bonds to China.

Wen will address the Greek parliament on Sunday and leave early on Monday for Brussels, where he will attend an EU-China summit before going on to Germany, Italy and Turkey.

Clinching business deals with countries such as China and Qatar would help boost confidence among Greek consumers and businesses, economic analysts said.

With the global economic crisis and competition with other Balkan countries increasing, foreign direct investment in Greece fell from 6.9 billion euros in 2006 to 4.5 billion in 2009, according to Investment Ministry figures.

Chinese investment represents a very small proportion of this, excluding a 35-year concession deal China's Cosco signed in 2008 to turn the port of Piraeus into a regional hub for a guaranteed amount of 3.4 billion euros, according to port authority figures.

Wen is also likely to deal with international pressure on China over its currency exchange policies during his tour.

Transfer savings from your Ordinary Account (OA) to the Special Account (SA)

I topped up my minimum sum when the scheme became available to take advantage of the risk-free 4% compounding rate. You may think that difference between 2.5% and 4% may not be big deal; but after 25 years the Maths shows that an initial $1,000 transferred from OA to SA will be 1.44 times more as illustrated below:

$1000 in CPF account after 25 years

OA 2.5%: $1,854
SA 4.0%: $2,666 (1.44 times more than the amount in OA)

Read? The Best Secret in Investment and Trading – Compound Interest

My War Room

"The general who wins a battle makes many calculations in his temple before the battle is fought. The general who loses a battle makes but few calculations beforehand. Thus do many calculations lead to victory, and few calculations to defeat; how much more no calculation at all! It is by attention to this point that I can foresee who is likely to win or lose."  - Sun Tze

Read? Stock Market Is War - Part 4

This must NOT happen to me AGAIN!

Mission 2009

I am still waiting for the last Commando in Mission 2009 to return to Base Camp. He was sent to attack enemy in the Property Jungle but unfortunately he was frequently ambushed by Singapore and Chinese Government by dropping bombs at Property Jungle.  He has been trapped for 424 days.

Mission 2010

Most of the Commandos sent in Mission 2010 have safely returned to the Base Camp except for two of them stuck and taking cover under Noble fire.

Missions Result

ROC: 3.1% - 34.3%

Holding days: 1 - 329

Mean ROC: 11%

Mean Holding days: 71

Mission 2011

Time to do strategic planning for Mission 2011.

Not All Dividend Stocks Are Created Equal!

Read? High Dividend Yield Stocks? - Part 8

Seriously looking at their dividend payout ratios and their growth potential as not all dividend stocks are created equal.

1. Not all Dividend Stocks have high yields

Stock price appreciation and high yields are great for those who bought them cheaper from the past Big Bears, but it doesn't help you if you're buying now. If you want high yield, you must be able to wait patiently for the next Big Bear to give them to you.

2. Not all Dividend Stocks will see their stock prices appreciate quickly

It is a market myth that high tide will rise all boats. In reality, it will not.

3. Not all Dividend Stocks have healthy dividend payout ratios

The key to sustainable dividend growth is to keep dividends as a manageable percentage of net income. A low payout ratio will definitely make it easier for companies to increase dividends without exhausting profits.

Touchstone or Sardine?

Read? Me, No multi-baggers :-(

Read? Stupid! Son. It meant to be SOLD!

How to position now?

One way is by sorting out stocks into Touchstones and Sardines.

Touchstones

Holding on to Touchstones and hopefully they will be powered by the Bulls into Multi-baggers.

Sardines

Selling off sardines to stuff more feathers into pillows or getting ready more money to buy from coming Big Bears.

After a Hot September, Will the Markets Be Up in October?

By: Giovanny Moreano


Following the best September in 71 years for stocks, will the markets continue trending up?

Here is a look at how the major US averages performed after a positive September.

S&P 500 [.SPX 1146.24 5.04 (+0.44%) ]

In the past 30 years, the S&P closed up in September 14 times, or 47% of the time

Of the 14 instances that the S&P was positive in September, the index followed with a gain in October 9 times, or 64% of the time

The average gain in October when September was positive stands at 1.64%

The biggest gain in October following a positive September was recorded on 1982, when the index rose 11.04

In the past 61 years, the Dow closed up in September 24 times, or 39% of the time


Of the 24 instances that the Dow was positive in September, the index followed with a gain in October 13 times, or 54% of the time

The average gain in October when September was positive stands at 0.53%

The biggest gain in October following a positive September was recorded in 1998, when the index rose 9.56%

My money works harder for me.

I saw this ads at MRT station.

My money works harder for me.
Powered by Citi.

How about this version?


My money works harder for me.

 Powered by Bulls.

SIA triples size of retail bond offering

Createwealth8888: Looking at huge demand for 5-year SIA bond at 2.15% retail investors are more concerned on Return of Money than Return On Capital.

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

This comes on heels of tepid response from institutional investors, some say


By SIOW LI SEN

(SINGAPORE) Singapore Airlines has increased its retail bond offering to $150 million - three times as high as the original allocation of $50 million. This has been done by reducing the amount initially allocated to institutional investors following a lukewarm reception from smart money, BT understands.

SIA's unrated $300 million of 2.15 per cent 5-year bonds with a retail tranche was launched last week to coincide with the Singapore Exchange's (SGX) strategy to offer bond trading to retail investors.

SIA said it will reallocate up to $100 million of the bonds from the placement to the public offer, to satisfy excess demand from that quarter.

This means the $300 million worth of SIA bonds have been sold in equal amounts of $150 million to both retail and institutional investors.

The original allocation was $50 million for retail investors who could apply in minimum lots of $10,000. The placement tranche allocation of $250 million was sold at $100,000 apiece.

'To maximise retail participation, the reallocation feature allowed $100 million of the placement tranche to be reallocated to the public offer.

'Demand on the placement tranche picked up very quickly and when orders crossed $200 million, the placement channels were informed that allocation on the placement tranche was likely to be only $150 million,' said the arrangers of the issue. DBS, OCBC Bank and United Overseas Bank handled the bond issue.

At the close of the public offer on Tuesday, SIA said it had received $346,282,000 in subscription. 'We are very pleased with the response from both retail and institutional investors to the offering,' said SIA spokesman Nicholas Ionides.

All retail investors who applied for the SIA bonds will be allocated all or a portion of their subscription.

Fund managers told BT yesterday that, unlike retail, institutional investors have alternatives, and the SIA bonds pricing was a little too rich.

'Despite the fine credit standing of SIA, I think its 5-year bond at 2.15 per cent is a bit too aggressive,' said Teng Ngiek Lian, chief executive, Target Asset Management Pte Ltd.

'As institutional investors are better informed and have the ability to access other issues, I am not surprised if their response is lukewarm,' he said.

Earlier, in June, SIA sold $500 million of 3.22 per cent 10-year bonds to institutional investors.

Its latest bond sale took place around the same time as Keppel Corp's $500 million of 3.1 per cent 10-year bonds. Keppel Corp did not offer a retail tranche.

'This offering was made in response to demand from institutions for such bond issues. We have no plans at the moment for a retail bond issue, and will review our plans according to market demands,' said Eva Ho, KepCorp assistant general manager, group corporate communications.

CapitaMall Trust in August sold $300 million of 4-year and 7-year bonds, also to institutional investors. They were priced at 2.85 per cent and 3.55 per cent respectively.

SIA's latest bonds were unrated and 'some of the US funds have certain restrictions on the amount they can invest on unrated bonds', said Yueh Ee Lee, Aberdeen Asset Management portfolio manager.

Ms Yueh said local retail investors know SIA well.

'From the retail side, it makes a lot of sense. SIA is a household name - and you know what deposit rates are,' she said.

DBS's savings rates range from 0.1 to 0.25 per cent.

Observers say while bonds have rallied a lot, the bond market remains bullish, given expectations that the current record low interest rates could persist for a while.

Trading of the SIA bonds on SGX starts today.

Married with kids or not?

Just look at your own parents and grandparents to find your own answer to these two questions?

1. Are your grandparents better off without your parents?

2. Are your parents better off without you and siblings?