ARA: Breaking support. Going lower?

I have been looking at ARA. The downtrend is persistent and I have yet to initiate a long position here.

Today, ARA's share price broke its previous low of $1.29, gapping down and touching an intra day low of $1.26 before closing at $1.27.

The DIs are negatively placed but the ADX shows that the downtrend is not a strong one. In fact, volume seems to be reducing as price weakens.

If this continues to be the case, the MACD could indeed form a higher low as price forms a lower low. A positive divergence in the works? Perhaps.

If we would like to do a bit of pre-empting, what price would we buy at?

$1.22 is a price that market participants would remember as that was the low of 21 Oct 2010 and the counter went much higher from there in the following months.

Next would be $1.17 which seems like a significant resistance which was tested many times before being overcome convincingly. It should therefore be an important support if tested. If that goes, we could see $1.08 next.

If we believe in trendlines and channels, we will see that ARA's share price seems to be nearing the support of its down channel.

Of course, this support could be compromised like it was earlier in August. However, when it was compromised, it recovered relatively quickly. Could it happen again?

Tea with AK71: Eldershield.

I am quite aware that I am ageing and, once in a while, I am reminded of the fact by other people.

Today, the government reminds me of this same fact by sending me a notice saying that I would be automatically insured under Eldershield come 31 December 2011.

Eldershield? Me? Wow, elder. This is cheerful.

So, being Singaporean, I want to know "how much"?

Annual premium: $174.96, payable till age 65.
Total premium from age 40 to age 65: $4,548.96

Second question, "what are the benefits"?

Benefits: $400 a month payout (maximum lifetime limit of 72 months).
Maximum claimable: S$ 28,800.00
Lifetime coverage.

OK, next question is harder. Do I need this? I mean is this really necessary? Opinions, anyone?

CapitaMalls Asia: Directions, please.

On 15 August, I mentioned that pre-empting a trend reversal did not work out and I ceased buying more shares of CapitaMalls Asia. Then, I used the rebound later in the month to reduce exposure.

On the daily chart, it is interesting to note that the Bollinger Bands are narrowing once more. This reduction in volatility when interpreted together with a rising 20dMA that is on the verge of forming a golden cross with the 50dMA suggests that price is more likely to rise than fall.

In the event that price should go higher, we could see it testing the declining 100dMA and even the downtrend resistance again. These are currently at $1.44 and $1.57 respectively. Gap resistance at $1.40 and $1.55 would have to be overcome first in these two instances.

What if price were to weaken instead? I would wait to see if the low of $1.13 holds up as support, failing which I would want to see if a higher low forms on the MACD. Looking out for a positive divergence? You guessed it.

$120k annual passive income from S-REITs next?

With the end of 2011 more or less in sight, I decided to take a look at how my aim to generate at least $50K in annual passive income from the stock market has fared this year. Of course, compared to the end of 2010, many things have changed. Don't they say that the only constant in life is change?

Saizen REIT was my largest investment up till early this year. The massive earthquake that struck Japan on 11 March 2011 left huge areas of the country devastated, areas which are economically important. I reduced my investment in Saizen REIT even though its buildings were largely unaffected with only a handful requiring repair work.

It was a decision premised upon possibly more difficult times that would hit the country and from a technical standpoint, further upside in its unit price could be capped. So, reading the charts back then, I waited for a rebound in the REIT's unit price and partially divested my investment in the REIT at gap resistance.

Next, I tweaked my portfolio with funds freed from the partial divestment of Saizen REIT. I further increased my investment in First REIT and initiated long positions in Sabana REIT and Cache Logistics Trust after doing the necessary due diligence.

Not long after, I reduced my investment in AIMS AMP Capital Industrial REIT, shifting the funds from that partial divestment to Sabana REIT, in the process balancing the two REITs' weight in my portfolio.

In 2011, thus far, I have received income from the following S-REITs:

1. AIMS AMP Capital Industrial REIT
2. Saizen REIT
3. First REIT
4. LMIR
5. Cache Logistics Trust
6. Sabana REIT
7. Suntec REIT
8. Cambridge Industrial Trust
9. FCOT

Total: $75,785.49.

Therefore, I have exceeded my personal target of $50k in annual passive income generated from investments in the stock market this year and this is from S-REITs alone.

At the end of this year, I will calculate the amount of passive income which S-REITs alone would have generated for me in 2011. It is quite likely that it could surprise on the high side.

Taking the cue from the blogmaster of Bully the Bear, I might have to set a higher target for myself in 2012. What about $120k next? Why not?

12 of this every year? Wah!

I will end this blog post by again saying: "If AK71 can do it, so can you."

Joi Kin! (ala "Yan can cook, so can you!")

Related posts:

1. Seven steps to creating passive income from the stock market.

2. $50k in annual passive income: Year end status (2010).

3. Sanity prevails with more good news.

First REIT: Could retest 84c high.

Just like Cache Logistics Trust, First REIT saw its unit price moving higher on the back of higher volume in the last session.

Unlike my position in Cache Logistics Trust, however, my long position in First REIT is much larger and I stand ready to sell into strength if the opportunity presents itself.

It seems to me that First REIT's unit price broke out of an ascending triangle pattern. If this pattern is a valid one, we could see the high achieved in late July earlier this year tested. This is at 84c. Before that, I expect gap filling at 81c which could offer some resistance.

In an earlier blog post, I also said the fair value of the REIT is at 80c. So, if you have guessed that I have put in sell orders at 81c and 84c, you are right.

Related post:
First REIT: XR and fair value.

Cache Logistics Trust: Further divestment at $1.

On 29 August, I mentioned that the mini double bottom, if valid, could see price go higher with a target of $1. On that same day, I partially divested my investment in the REIT as gap was filled at 96c.

On 8 September, I divested further at 98c which I thought was a rather stubborn resistance. The stochastics also showed the REIT to be very much overbought.

However, as is my usual style, recognising that TA is all about probability and never certainty, I did not divest fully. Today, my overnight sell order at $1 for Cache Logistics Trust was filled late in the afternoon.

With today's further divestment, my investment in Cache Logistics Trust is reduced to a rather small position, similar in size to my remaining investment in Suntec REIT. I would probably not do a full divestment unless Mr. Market should go crazy and give me a much higher price from here.

Technically, closing at $1.01 on the back of relatively high volume is good news for long holders and we could see the historic high of $1.02 tested next.

With Stochastics still high in the overbought region, we could see the REIT's unit price pulling back to supports. Of course, in extremely bullish circumstances, overbought conditions could persist for quite a while.

Related posts:
Cache Logistics Trust: Gap closed at 96c.
Cache Logistics Trust: Partial divestment at 98c.

Year end vacation: Great deals!

If you are still planning to go on that year end vacation and missed NATAS, never fear! There are still great deals around!

As I am also planning year end vacations, I came across a few good deals but you have to book soon as prices tend to increase towards end of the year.


Phuket (3D/2N), second half of November 2011.
Package price for 2 persons: S$584.00
(includes all taxes and fees.)
Airline: JetStar.
Hotel: Burasari Patong (4 star boutique hotel).

Bangkok (3D/2N), second half of November 2011.
Package price for 2 persons: S$647.12
(includes all taxes and fees.)
Airline: JetStar.
Hotel: Baiyoke Sky Hotel (4 star 88 storey high hotel).

Click on the banner to see more good deals!

Book online conveniently.

No service charge for credit card payment. Bon voyage!

Sabana REIT: 3A Joo Koon Circle and 2 Toh Tuck Link.

Sabana REIT is acquiring two more properties.

1. 2 Toh Tuck Link
Price: $39.8 m
Remaining lease: 45 years

2. 3A Joo Koon Circle
Price: $40.2 m
Remaining lease: 36 years

The purchases will be financed by debt.
With these acquisitions, gearing will be raised 33.7%.

Technically, trading of Sabana REIT's units is seeing decreasing volume as price hits a stubborn resistance at 89c. Although the MACD is rising, it is still in negative territory. A retest of support would be nice before a stronger push to break resistance.

If 89c resistance could be taken out convincingly, I expect the next major resistance to be at 92c, which was formerly an important support. Before that, there is 90c to contend with. 90c is also where we find the declining 50dMA.

I could buy more if the support at 88c should be tested in the near term.

See announcements here:
3A Joo Koon Circle
2 Toh Tuck Link

Phillip Securities: BUY. Target: $1.12.

Sabana Shari’ah Compliant Industrial Reit rated 'outperform' by Daiwa Capital with six-month target price of $1.05. DPU forecasts up by just over 5% for 2012-2013.
Thursday, 15 September 2011

© 2011 - The Edge Singapore

Fright Night!

Thinking of going to the movies? Wondering what to watch?

Charley Brewster (Anton Yelchin) is a high school senior who’s on top of the world — that is until Jerry (Colin Farrell) moves in next door and Charlie discovers that he is a vampire preying on the neighbourhood.

Click and find out more about Fright Night!

No change to my plan as I plan changes to my life.

Recently, I have not been blogging very much about the stock market or anything to do with investments, I am sure regular readers have noticed. There are various reasons for this but the primary reason is because I have put in place a plan for whichever direction the stock market may go.

If the stock market should trade sideways, I will keep the status quo and simply collect income from my investments. There is no need to trade constantly.

However, recent and future changes in my life are likely to result in less free time in future. I am and will be spending more time with my family, on self-improvement and, perhaps, even travelling.

Although I am not really affected by the current state of the stock market, going by the emails I have received, I know many people are. It is no surprise that many are wondering what to do. Should they hold? Should they sell? Should they buy more?

I always tell people that if they do not feel comfortable investing in something, don't. There is no point in being invested in the hope of making money and getting sleepless nights worrying about how the investment might turn out.

Of course, for the more open-minded and those with more questioning minds, asking questions to understand why the discomfort exists is the way to go. From there, go one step further, ask questions and see if the reasons for any aversion are actually valid. This would point us in the right direction.

Now, regular readers would know that I am heavily invested in certain S-REITs. I continue to believe that the very low interest rate environment which is likely to persist till 2013 is going to be good for REITs.

In an environment where economic growth is more likely to be revised downwards than upwards, REITs' more predictable and consistent income streams are also a big plus. REITs can continue to do well even with a reduction in economic growth or even with zero growth. In prolonged recessions, REITs are also quite resilient even if some tenants go broke because of the many months of rental deposits they collect from tenants.

So, being relatively heavy in S-REITs which provide between 8 to 10% per annum in distribution yield while I sit out the volatility in the stock market provides me with a peace of mind and some meaningful regular income at the same time.

Recently, there were people who mentioned that we have to be concerned with the fact that most industrial properties in Singapore are between 30 to 60 years leasehold in nature. Therefore, the high distribution yields are not perpetual. Of course, they are not perpetual but this does not mean that they do not make good investments in the meantime.

I learned through experience that freehold properties do not necessarily mean that they will do better in terms of valuations or rental income. It only means that they are yours in perpetuity. I can say for a fact that certain leasehold properties have done much better than freehold properties in the last few years. How much a piece of real estate is worth depends on demand. It is quite simple.

With demand for industrial properties, especially high tech industrial types, likely to remain resilient in Singapore, investing in industrial properties S-REITs with stronger numbers cannot go far wrong. In this respect, Sabana REIT has my vote.

What about AIMS AMP Capital Industrial REIT? Well, even its most vehement detractors (mostly from its MI-REIT days) must admit that the REIT has done much better since George Wang et al came into the picture. Like I said in an earlier blog post, some short term pain is likely with the redevelopment of 20 Gul Way but the longer term benefits make it worthwhile.

Finally, to dispel the misconception that I am a diehard optimist of REITs, I will say again that it is unlikely that conditions will always remain this benign for REITs. I am, therefore, unlikely to remain heavily invested in REITs forever. There will, most probably, come a time to divest but the time is not now.

Of course, my believes remain just believes. They form partially the basis for the plan I have in place now. Although I feel that my plan will serve me well, there is no way to be sure until the storm is over. Do your own due diligence and if you feel that my plan suits your purpose, go for it.

With my finances almost on auto-pilot, I will try to spend more time on other aspects of my life from now.

Related post:
Staying positive on S-REITs.

Tom Ford Nicole Sunglasses - Only US$129.99

I am not a fashionable person and I had no idea what was Tom Ford until a friend told me it is a luxury brand a few months ago.

This friend of mine also bought a pair of Tom Ford glasses. My glasses almost fell off my face when I heard the price!

If we must buy luxury brand goods, at least we should get them at good prices. Well, that's how I see it anyway.

From now through the 19th, you can buy Tom Ford Nicole Sunglasses for only US$129.99 for a savings of US$260.01 (67%).

This is an amazing product deal. So, I am promoting it while it lasts.

Tea with AK71: McDonald's shows us how!

We often come across signs at eateries which say "No studying." Although these signs do the job, they are not very friendly and they do nothing positive for the public image of the establishment as well.

We know the reason for these signs but couldn't they be worded nicely?

A good example of how it should be done!

Thumbs up for McDonald's!

Singapore Airlines: Slow to board the social media flight?

I might be slow here but I only read in The Business Times recently that SIA took over an unofficial facebook page. Apparently, the SIA facebook page was originally set up by fans and had almost 100,000 members.

Until almost two years ago, I didn't really know what was social media. OK, I heard of blogs, which I thought was a classy bog, and Twitter, which I thought was a noisy chatroom, and Facebook, which I thought was a vanity item. Yes, that's me, an IT dinosaur.

After I got the hang of blogging, it took me quite a while to get on Twitter and, more recently, Facebook. While blogging serves a purpose for me, being a platform for me to pen my thoughts and analyses, I could not see any advantages of being on Twitter and Facebook. I only started accounts because of requests by some readers.

Since starting a Twitter account many months ago, a grand total of 33 people are following my blogs using it. My Facebook account is less than a month old, so, having 3 members is a start. However, I think the most popular way in which readers follow my blog is still through Feedburner. Almost 600 people are following my blogs via feeds!

I know people who have terminated their Twitter accounts because they were not very successful. I also know people who claim that Facebook is more effective than Twitter in spreading the word. I kind of suspect that these are just different tools for different purposes and, most probably, Feedburner is the best tool for my blog to keep readers updated.

So, the view that SIA is very late in latching onto social media and how it has been detrimental to its business is something I do not quite understand. For those who do understand, please be kind to me. Laugh a little if you must but enlighten me with your insights please. :)

Tea with AK71: Good food at good prices!

Recently, I had some good food at good prices:

Breakfast at Coffee Bean & Tea Leaf. 1 for 1. I paid $7.70 for two sets of the above plus two cups of tea. A great deal!

This was a treat because I always see a long queue at the Western Cuisine stall at Kopitiam, Bukit Panjang Plaza. I hate to wait too long for my food but there was no queue that day! $6.10 after discount! Not bad.

Buuuuuuurp! I was a happy man! :D

Carpark Not Enough!

Although there are cries of discontent in some quarters and this is amply evident in the last General Election as well as the Presidential Election, it seems that more HDB dwellers are doing better in recent years.

How do we know this? Wait for Jack Neo to make a movie "HDB Parking Lots Not Enough!", maybe.

I read an article in The Straits Times on my iPad today that the "pace of growth of car ownership has overtaken that of HDB's carpark-building programme.

"The number of HDB carpark spaces has risen from 539,800 in 2005 to 557,000 as at June this year - a 3.2 per cent rise.

"But the number of HDB households - the bulk of Singapore households - with a car has grown by 26.3 per cent to 310,400 over the same period. And the number with more than one car has shot up by 76.5 per cent to 45,900."

It seems that we could use the scarcity of HDB carpark spaces as an indicator of economic prosperity in Singapore. Given the cost of car ownership in Singapore, the growth of car ownership amongst HDB households probably shows that many are better off in recent times.

For me, I am glad that I do not have a problem finding a parking lot in the HDB estate where I stay now. Well, not yet, perhaps.

My weaknesses.

When it comes to junk food, I have two big weaknesses: ice cream and chocolates.

The atas and delectable stuff from Haagen Dazs:

This costs several times more than a strawberry sundae from McDonald's but it was so good!

Burp.

Cache Logistics Trust: Partial divestment at 98c.

On 29 August, I blogged about partially divesting my investment in Cache Logistics Trust as the gap was filled at 96c. Today, my overnight sell order at 98c was filled.

After the gap at 97.5c was filled on 1 September, the REIT's unit price seems to be having difficulty clearing 98c, which is a natural candlestick resistance as well.

As the REIT's unit price does not seem to exhibit any form of trend, I look at the Stochastics to catch a glimpse of what is likely to happen next. Stochastics is in the overbought region and this suggests that chances of a pull back is higher than not.

Breaking out of 98c convincingly could see $1 tested next while further downside could see a retest of 91.5c for support. A simple risk and reward consideration suggests that another partial divestment at the current price level is a good idea.

Related post:
Cache Logistics Trust: Gap closed at 96c.

CapitaMalls Asia: At resistance.

While chatting in LP's infamous cbox today, a cboxer, OT, said that he is queueing to sell some shares of CapitaMalls Asia at $1.395 because I said that is where gap filling could happen. That was based on TA which I did more than a week ago.

TA is dynamic. What is valid now might not be valid a week later. So, is this case any different?

Share price touched a high of $1.36 which is where we find resistance provided by a flat 50dMA. It closed at $1.345 which is where we find the declining trendline resistance.

The MACD is rising nicely but it is still in negative territory. Volume although slightly higher is not impressive. This rebound could sputter and fail quite easily.

If both the 50dMA and the trendline resistance could be taken out in the next session, we could indeed see the gap filled at $1.395. If the share price could close above the 50dMA in the next session, we could even see $1.44 tested next. Will it happen?

TA simply hints of what could happen and we must have plans for all possible eventualities.

Related post:
CapitaMalls Asia: Rebounding.

AIMS AMP Capital Industrial REIT: Consolidation and corporate rating.

Some readers left comments here in my blog while others wrote me emails asking me about the proposal by AIMS AMP Capital Industrial REIT to consolidate 5 units into 1.

Personally, I am not really concerned with this exercise. Why? 

The fundamentals will not change with this exercise. It is still the same REIT with the same fundamentals. As for whether the REIT's unit price will do better or worse after consolidation, if only I knew.

Am I not doing anything with regards to this exercise? I will continue to monitor the REIT's unit price. If its valuation becomes very compelling, I will buy more at supports. If the unit price were to retest resistance, I could divest.

A more important and positive development is the upgrading of the REIT's corporate rating by Moody's. The new rating is Ba1 with a stable outlook. A stronger rating improves investors' confidence and could make borrowings cheaper and more accessible for the REIT.

The improvement in rating is even more significant when we take into consideration the redevelopment of 20 Gul Way.

In an earlier blog post, I said that the redevelopment is a step in the right direction as the REIT moves to maximise the use of its plot ratio of 1.4x from the current 0.46x.

However, there will be short term pain manifested in various forms during the redevelopment period. The most immediately apparent would be the loss of rental income from 20 Gul Way during the redevelopment period.

I estimate a reduction of about 9% in distribution income which means that the DPU per year once the proposed redevelopment is underway could be lowered to 1.99c, assuming that the REIT pays out 100% of its distributable income.

At a unit price of 20c, therefore, the REIT still offers an attractive proforma distribution yield of almost 10%. If the REIT were to reduce payouts to 90% in view of the said redevelopment, we are still looking at a proforma distribution yield of almost 9%.

AIMS AMP Capital Industrial REIT and Sabana REIT have almost equal weightage in my portfolio and, together, form about 50% of my total investment in the stock market. They are likely to remain significant passive income generators for me.

Read full report from Moody's here.

Related post:
AIMS AMP Capital Industrial REIT: Higher DPU and 20 Gul Way.

Tharman Shanmugaratnam has spoken.

I think Tharman Shanmugaratnam is a really brainy guy. He also did our country proud when he was selected as the Chairman of the International Monetary and Financial Committee.

When Tony Tan talks about the economy, I listen. When Tharman S. talks about the economy, I listen too and he has spoken.

"Tharman Shanmugaratnam told a conference that the world has now “entered a phase where there is a self reinforcing cycle” of a loss of consumer confidence, which is leading companies to hold back on investing.

“Asia will not be immune to a global slowdown,” Tharman said. The Singapore economy is highly reliant on international trade."


Related posts:
Wage slaves should be fearful.

Singapore says global recession more likely than not
Tuesday, 06 September 2011

© 2011 - The Edge Singapore

Courage Marine: Added at 10.5c a share.

It has been some time since I wrote about Courage Marine. With the BDI in a downtrend, there was no reason to go long on this counter. The last time I did something pertaining to this counter was a divestment when news of a dual listing in Hong Kong was made known.

However, as I like the company, I have been tracking its performance which is of course closely tied to the BDI as most of its revenue is derived from spot rates.

The BDI was consolidating for many months. Since hitting a low in early 2011, 1,250 has been established as a support, four times tested no less. 1,500 was breached recently and retested successfully as support. The BDI has broken out of its consolidation phase and we could be seeing a trend reversal starting in earnest.

Courage Marine's share price went lower than its low of end 2008 recently. This means that the market expects the company to do worse than it did in the last recession but with the BDI breaking out of its consolidation phase to the upside, the fundamentals seem to suggest something else.

So, I have tip-toed back into Courage Marine, re-initiating a long position in the company. Technically, I am wary of initiating too big a long position because the declining 20dMA could push price lower again. If price were to overcome the 20dMA convincingly, we could see 12.5c and 13.5c tested next.

Related posts:
Courage Marine: Profit warning.

Bullish on Noble, IndoAgri, Genting and DBS?

I was reading The Straits Times online edition. Yup! AK71 is catching up with the Times! I love this pun!

There is an interesting article by Andy Mukherjee titled "Don't get seduced by analysts' darlings" and he selected four stocks as examples.

Andy is of the opinion that "analysts are overly bullish. They are beginning to turn nervous, but are far from throwing in the towel."

He also said that "for choppy markets to get better, sentiment must first hit rock bottom. Like it did in the first quarter of 2009."

Stock #1: Noble Group

"Analysts are still wildly bullish about Noble... (with) consensus estimate for the stock (suggesting) a 35 per cent upside.

"Noble shares fell more than 80 per cent between June and October 2008."

Stock #2: Indofood Agri Resources

"With the hiving off of Salim Ivomas Pratama, .. the company is sitting S$860 million in cash, with little clarity from management on future expansion. Meanwhile, the profit accruing to Indofood shareholders grew less than expected in the June quarter... The consensus estimate for the stock's target price is about 33 per cent higher than the current price."

Stock #3: Genting Singapore

"Chip volumes declined 13 per cent from the previous three months... Overall, though, the analyst community is still gung-ho on Genting... (and) the consensus target price is still 28 per cent higher than the market price."

Stock # 4: DBS

".. local currency interbank rates in Singapore... have collapsed. One key rate - the swap offer rate - has even turned negative.... The consensus in the analyst community, however, is that DBS Group's fair value is 28 per cent higher than what the stock currently sells for.

"If the Singapore economy slips into a technical recession this quarter and loan growth slows markedly, then the lingering optimism on DBS could dissipate. That could be risky for investors.

"For now, the cash in your mattress is quite safe where it is. If you really want to do something with your money, consider stocks with high dividend yields."

I do not think staying in cash 100% is a good idea since Mr. Market has a way of surprising us sometimes. Will we have a recession for sure? What if markets simply continue to trade sideways while inflation rages on?

Even famed New York University economist Nouriel Roubini, a perpetual bear, puts the risk of a double dip recession at 60 per cent probability and not anything closer to 100 per cent certainty.

The more we expect something to happen, the more it might not happen. So, without perfect knowledge, the best strategy, in my opinion, is to have a warchest ready even as we stay invested.

Oh, I am not vested in any of the above stocks.

Related posts:
1. Should we be staying invested or in cash?
2. Sleep well at night with a plan.
3. Stock market analysts.
4. A capital question: How much to have or how much to use?
5. Investing in REITs: A flawed strategy?
6. Dr Marc Faber: How not to lose money?

Wage slaves should be fearful.

I had a conversation with someone who said he is living hand to mouth and that he is somewhat worried with how things are developing in the world now.

Although Asia is where we find economic growth these days and it explains why people are flocking here as they look for better opportunities, if a global recession should transpire, Singapore is unlikely to be spared. 

In fact, we are likely to suffer more than others due to our very open economy which is highly dependent on external demand. Many are likely to lose their jobs in such a situation.






So, my friend is right to be fearful if he was indeed living hand to mouth. If he should become unemployed, he would be in deep trouble. For people like him, we cannot even start talking about investing in the stock market.

Using some common sense, what would I do if I were him? He must first get his finances in order:

1.  Look at his expenses. See what are necessities and what are not. Remove the latter, mercilessly.

For example, I know someone who sold his 5 year old car recently because the very bouyant COE prices now means that he could sell his car at a higher price than two years ago, minimising losses, losing $6K instead of >$10K. He now saves $800 a month in monthly repayment and is taking public transport for now. The car was not a necessity.

2.  Save money! Make sure he saves enough money to cover at least a year's worth of expenses. This will be his emergency funds. In case he should be retrenched in the next recession, he would have ample time to look for a job.

Some financial advisors say putting aside 6 months salary is the rule of thumb. For me, I would say measuring how much we should put aside in terms of expenses is more meaningful. If we should have enough money put aside to cover expenses for 10 years, not considering inflationary pressures, are we recession proof?






3.  Any money in excess of the emergency funds, he should put to work, investing for greater returns. Having excessive savings is silly given the paltry interest payment on savings.

Having said this, with the stock market weakening continually now, we should be prudent and not throw everything including the kitchen sink into stocks.

4.  I would also suggest that he looks into ways of increasing his income in his current job or a new job. He might also want to look for supplementary income. Be more productive.

No one owes us a living. Unless we can show that we can make valuable contributions, no one will think we are valuable enough to pay us!

Living hand to mouth is being a wage slave. Wage slaves are pitiful but someone who is living like a wage slave when he does not have to is NOT pitiful.

Note:
Wage slavery refers to a situation where a person's livelihood depends on wages, especially when the dependence is total and immediate. (Source: Wikipedia.)

Related posts:
1. Needs and wants.
2. Do you want to be richer?

Tea with AK71: Durians tidak boleh?

This photo was taken at a MRT station on the Circle Line. See why people say Singapore is a "fine" country?

No durians but no fine if we were caught har?

Are the authorities partial to durians?

Does anyone know the reason why there is no fine for being caught with durians on MRT trains?

Could it be that the powers that be have not decided on how much the fine should be? If so, I have a suggestion!

To be fair, they should have a weighing scale at every station and the quantum of each fine should be determined by the weight of the offending fruit which was brought onboard!

Bring more, fine more. Bring less, fine less.

If the reason for banning durians on MRT trains is because of its endearing fragrance, what about durian mooncakes, durian puffs, durian puddings and other such yummy delights?

Heavens forfend! ;)

Sabana REIT: 90c sell order filled.

My overnight sell order at 90c was filled. Those units which were bought at 87c and 88c were divested. I liken the gains to locking in income distributions in advance.

As I still have a sizeable investment in Sabana REIT, divesting those bought at lower prices for capital gain does not seem like a bad idea with market volatility likely to be the norm for a while. I could well have opportunities to buy in again on the cheap in future.

What if its unit price were to stay strong? That would make me happy too since I am still very much vested. Either way, I have a plan and that means I sleep better at night.

Although the MACD has completed a bullish crossover with the signal line, momentum is still negative. This is a rebound and not an uptrend.

90c is a natural resistance level. If this were to be broken convincingly, we could see its unit price rising higher to retest resistance in a band of prices from 91.5c to 92.5c.

Related post:
Why I do not panic?