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President Obama has been re-elected! Seems that Mr. Ben Benanke's job is safe. More quantitative easing, a weaker US$ and stronger inflationary pressure? Seems like it.
People are concerned about the "fiscal cliff". Could it turn out to be a non-event? Could the Democrats and Republicans reach a compromise?
What is the "fiscal cliff" all about and why should we be concerned?
If the current laws slated for 2013 go into effect, the impact on the economy could be dramatic. While the combination of higher taxes and spending cuts would reduce the deficit by an estimated $560 billion... the policies set to go into effect would cut gross domestic product (GDP) by four percentage points in 2013, sending the economy into a recession.
See full write up at: The fiscal cliff explained.
President Barack Obama won re-election in a tight campaign, besting Republican presidential nominee Mitt Romney in enough swing states to secure four more years in office.
The specter of gridlock would undoubtedly loom before Obama as he confronts an immediate task in addressing the series of automatic tax hikes and spending cuts – the so-called “fiscal cliff” – set to spring into place at the end of this year. As Obama won a second term, House Speaker John Boehner, R-Ohio, said Republicans’ retention of their House majority meant “the American people have also made clear that there is NO mandate for raising tax rates.”
Read full story at: NBC News!
The story does not end with President Obama's re-election, for sure. Another chapter is about to begin.
Bloggy Award
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The dollar tumbled against the euro in Asian forex trading after President Barack Obama won a second term following a nail-biter White House race.
An Obama victory was seen among traders as a dollar-selling cue as it may suggest further easing measures by the US Federal Reserve, after the central bank ushered in a $40 billion monthly bond-buying programme to spur the world's biggest economy.
See: Dollar tumbles against euro after Obama win.
"a weaker US$ and stronger inflationary pressure"
Gold anyone? QE to infinity!
Looks like i may not be parting with my gold anytime soon. :)
Hi JCK,
I am holding on to my gold coins and maintaining my UOB silver savings account for sure.
Ak
So am i. Very tightly to the gold.
i trade silver using AGQ ProShares Ultra Silver (ETF) on the NYSE.
Does uob keep the gold coins for you?
Hi JCK,
My methods are confined to what is available to me in Singapore. I am a bit of a mountain tortoise. ;p
Hi opal,
I have the gold coins at home. :)
AK
AGQ is a derivative of silver price movement...3x the movement of silver price to be exact! :)
Highly volatile....i have seen it at $400 coming down to $150 in less than a month! It has been adjusted for a split in two.
Thats my exposure to silver plus some numismatic coins.
Hi JCK,
3x the movement? Wow! Gains and losses are magnified as well. I am a mountain tortoise with a weak heart. ;p
Maybe you can consider renting a deposit box to keep those coins :)
Hi opal,
My mom and I used to have 2 safe deposit boxes with UOB. We gave one up after deciding that it was too expensive to maintain two. Apart from some jewelry, most of the stuff in the boxes were probably not worth much. They had more sentimental than monetary value.
I think my parents' home is quite safe with layers of security measures. Free of charge and more convenient. ;p
Hi AK,
Just wondering how bad is the fiscal cliff going to impact SREIT? Not sure whether it is the right time to offload now and buy back when the price drops?
Hi ryan,
Well, if they don't do anything to avert the fiscal cliff, it is going to be quite bad. A USA in recession is going to have negative effects throughout the world. Singapore's open economy would feel the full force of it.
Then, is it the right time to offload S-REITs? Buy back again when prices fall? I don't have the answers to these questions.
Rather than think that this could be the right time to offload S-REITs and that we could buy back when prices fall, I would rather have a plan for "if" prices fall.
If? Yes, there is a good chance that the fiscal cliff could be avoided after all. Nothing is for certain.
Personally, I am accumulating cash while staying invested. :)
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