They were just showing off their wealth!

I was out the whole Sunday. I left home at 9am to meet a friend for breakfast. Then, I went to the gym before meeting another friend for lunch. After that, I went shopping before taking a break at UOB, reading all the periodicals I bought the night before.

In the evening, I went to Vivo City where I had dinner at the food court before doing a bit more shopping. I hardly do any shopping usually but I was looking for some things. Well, I found the stuff I was looking for in MUJI and Franc Franc. Yup, they were household items.

It is good to spend a whole day outside once in a while because I spend too much time cooped up at home. My Taiwanese friends call me a 宅男 which is not a compliment as I discovered. Anyway, being me, I couldn't help observing people and overhearing the kind of things they said.

While walking past the front of Hilton Hotel, a youngish couple drove into the driveway and parked their car alongside the Jaguars, Mercedes Benzs and BMWs. They were driving a bright red Ferrari with three exhaust pipes. Very impressive looking.

A little boy and his dad saw this too and as they walked past me, I heard the boy saying something about the car being nice. The dad told the boy, "They are just showing off."

Although I think that a Ferrari is not a very practical car for Singapore's roads, there are people who have lots of money and which car they drive is a matter of personal choice. I don't think it was appropriate for the dad to say what he said to the boy. In fact, it sounded a bit sour to me.

Perhaps, he could have responded by saying that it was indeed a nice car but it wasn't very practical to have cars like that in Singapore. He could go on to explain why. 

Would not such a response be more educational?

Related post:
Change to become richer: need or want?

How to get free bus rides any time, any day?

A few days ago, the Singapore government started a year long trial offering free rides on MRT trains to commuters who journey into 16 stations before 7.45am on weekdays. What about those who take buses? So unfair!

Well, want to get free bus rides any time, any day? Watch the video and be amazed:





This gives "riding on a bus" a new meaning, don't you agree?

What a visit to NTUC Fairprice could teach us about investing in stocks?

I have blogged about how to explain to sceptical family members that investing in the stock market is not the same as gambling. I have blogged about how soon should we start the next generation on investing and I have also recommended a book to this end.

These topics are evergreens. 5, 10 or 20 years later, we will still have people facing these issues, I don't doubt. To deal with these issues, it helps if we are more creative. Using examples from our daily life and using language free from financial jargon will probably see positive results.

For example, I would explain to my niece that when we see good value for money, we buy. So, seeing two 1kg packets of rolled oats selling at $6.95 instead of the usual $9.90, I bought right away. It was almost automatic. I didn't really have to think.

How sure was I that it was a good deal? Well, I probably consume more oats than the average Singaporean. I have oatmeal for breakfast everyday and sometimes for both breakfast and lunch. So, I know the price of rolled oats quite well. This is within my "circle of competence", so to speak.

Extending this example to the stock market, when prices of stocks we are familiar with or within our circle of competence fall to levels which offer good value for money, why do people hesitate to buy? Obviously, there is fear that prices could fall further. Then, what if prices did not fall further?

I blog continually about the importance of having a war chest. However, what is also important is having a reliable stream of income, passive income preferably.

If our war chest is smallish, it could get exhausted quickly. So, we will need a constant stream of income to fill it up. This is why investing for income is so relevant and, indeed, important.

Know people who think that investing in the stock market is too esoteric a subject? You might want to share AK's story about his circle of competence with packets of rolled oats which offered value for money.

Related posts:
1. Investing in the stock market is gambling!
2. If AK71 can cook, so can you!
3. At what age to start investing in stocks?
4. Let your child have fun and a head start in life.
5. Teaching young children financial literacy.

Return the money, Kitty!

And I thought Hello Kitty was the only money grabbing kitten in this world,





I enjoyed this video. Made me smile.

Hope it made you smile too.

Related post:
McDonald's Hello Kitty.

Repairing my Tag Heuer watch.

I had to send my Tag Heuer watch for repairs because one hand was free wheeling.

According to the service centre, I must have dropped the watch before and watches don't like to be dropped. They are like living beings, I guess.

Anyway, after seeing the repair bill, I decided that I don't like to drop watches too!

$130. Ouch!

LVMH gave me a nice drawstring bag.

At least this is less expensive compared to my dad's Rolex which cost almost $800 to repair when he dropped it a couple of years ago.

The lesson to learn from these incidents is not to buy expensive watches!

Buy a cheap $40 Casio. Break it, throw it away and buy another!

What? You have a weakness for watches (like I do)?  Oh, dear. Good luck to both of us.

Related posts:
1. My CASIO watch.
2. Vintage ROLEX watch.

McDonald's Singing Bone Hello Kitty (aka Black Kitty).

People have gone crazy (once again) over the Hello Kitty plush toys sold at McDonald's.

This is something which I don't understand and probably never will.

You know what is even more difficult to understand? People paying $50 for a "collectible" Hello Kitty plush toy in the "black" market!

Collect them all?

Well, apparently, there is a black color Hello Kitty which is supposedly a limited edition. To me, it looks like Hello Kitty went for an x-ray and got a really bad overdose of radiation!

Anyway, whatever's your poison, right?

Pssst... Ever wondered where these toys were made in, who made them, how much they were paid and what were their working conditions? I wonder.

Don't pay inflated prices for N95 masks.

No smoke without fire. Er... unintended pun on the haze. Anyway, the stories are true. What stories? Stories of profiteering.

All businessmen are out to make money. There is nothing wrong with money making, is there? If there is no money to be made, why go into business?

However, to profit obscenely by taking advantage of a crisis that affects the entire nation, to me, is just a nauseating idea.

This was the official statement issued by CASE just a few days ago:

It has come to the attention of the Consumers Association of Singapore (CASE) that some retail outlets in Singapore have increased the prices of face masks, especially for the N95 face masks during this haze period.

CASE understands that many retailers have run out of stock of face masks due to the high demand for the masks. As such, some retailers may try to profit from the situation by selling face masks at a higher price. There have also been cases where individuals have brought face masks in bulk and resold them to the public at a profit.

CASE urges all suppliers and retailers to remain transparent and abide to the regular recommended retail price. They should not take advantage of the plight of consumers and inflate prices in this critical period of time.

Additionally, CASE advices consumers to exercise caution when purchasing face masks from unknown brands or retailers online. Such masks may not provide adequate protection from the haze. Consumers should also be wary of retailers taking advantage of the situation to sell face masks at unreasonable prices. They should stay vigilant and shop around instead of paying inflated prices at the nearest store.

 With the haze situation having improved temporarily, we have time to shop around for reasonably priced N95 respirator masks. The haze is likely to return with a vengeance when the wind direction changes again.


Say "NO" to profiteers!

Related post:
Buy 3M N95 respirator masks for less.

My two boxes of 3M N95 8210 masks.
Things will worsen in the coming weeks according to NEA.
Be prepared.

Which stocks have I been accumulating in June 2013?

As share prices decline over a prolonged period, Mr. Market's hope for a swift recovery becomes weaker and weaker. As Mr. Market despairs, he is going to sell stocks at even lower prices. Everything else remaining equal, this means that we can buy stocks with greater margins of safety from Mr. Market.

However, remember that Mr. Market is a fickle creature. His mood swings are well known. So, although waiting for the market to bottom sounds like a great idea, it is only possible to really call the bottom once it has come and gone. Therefore, I made a list of stocks which I would like to buy more of, including the prices which might be good to do so at.

Mr. Market's negativity is centred around expectations of a reduction in global liquidity and increase in interest rates. However, such concerns are really premature since what is really going to happen is a reduction in the growth of global liquidity and, by Ben Bernanke's admission, any increase in short term interest rates is farther into the future.

This suggests that S-REITs which are fundamentally sound will continue to deliver, distributing the income which I have become accustomed to receiving. With prices 15 to 20% lower than the peaks achieved not too long ago, valuations are more reasonable now although I would not say compelling.

So, which stocks have I been accumulating in the current correction?

Marco Polo Marine

I bought more shares of Marco Polo Marine at $0.37 to $0.375. I really like the news that the company bought a new 9,000 BHP AHTS at a bargain from a distressed yard. It would take the company's shipyard 18 months to build one from scratch and buying this AHTS allows Marco Polo Marine to more quickly meet market demands in Indonesia.

"Given the robust demand for OSVs and the gradual and consistent rise in daily charter rates experienced over the past  few months, the Group expects its offshore business to continue to spearhead the growth of its overall chartering revenue," Mr. Sean Lee, CEO, Marco Polo Marine.

Marco Polo Marine's listed Indonesian subsidiary has another 2 AHTS on order and these are being built in their own shipyard. Expected to be delivered sometime in 2014, Marco Polo Marine is likely to register much stronger performance next year. Buying at $0.37 to $0.375 is also a bargain as it is at >15% discount to NAV.

SPH

I got more shares of SPH at $4.22. That is some 10% lower than the top of $4.68 touched in early April a couple of months ago. Volume has also been reducing as price weakened. Sellers are less enthusiastic but without strong buying interest, price could drift lower.

Well, as Mr. Market would have it, SPH's share price went even lower today, closing at $4.16, the low of the day. The optimism surrounding SPH's plan to bundle Paragon and Clementi Mall into a REIT seems to have evaporated, hinting at the pessimism surrounding all things S-REITs at the moment.

At this time, remind ourselves that the listing of SPH REIT is a good thing for SPH's shareholders. It strengthens SPH's balance sheet without really compromising its revenue stream from its real estate holdings. SPH will see its gearing level reducing to almost zero.

With the promise of a special dividend of 18c per share, post SPH REIT's listing, there is a cushion against further decline in share price which, using Fibo retracement lines, will find support at:

$4.11 (123.6%)
$4.04 (138.2%)
$3.99 (150.0%)
$3.93 (161.8%)

Remember that TA shows where the supports are. There is no promise that the supports will be tested.

Certainly, if the opportunities should present themselves, offers at $3.93 or $3.99 a share cum special dividend of 18c would be more attractive propositions.

NeraTel

This is a stock which I got in at 40.5c a share some time back. This was after the failed take over bid by ST Engineering. I didn't do much research on this company on my own. Neither did I have any experience with it. Instead, I relied on some advice by a very good friend who has been a shareholder for years.

This is a net cash company and has a record of paying consistent and meaningful dividends. Its last payout was 4c a share with an EPS of 5c. At today's closing price of 61c, we are looking at a dividend yield of 6.56% which is very decent. With its recurring revenue streams, dividends are probably sustainable.

So, I bought more shares of NeraTel as its share price retreated from a high of 69.5c. With buy prices of 60c to 63c, the dividend yields are from 6.35% to 6.67%. Any further weakness and a possible test of the rising 200d MA (approximating 57.5c now) for support would see me increasing my long exposure.

Certainly, I cannot tell how share prices will move tomorrow. So, I cannot tell if my additional investments made recently will result in paper losses but I can tell if I have made relatively sound decisions.

By looking at charts, I can tell where supports are expected to be found. So, I can tell where I might be adding to my long positions, given the chance.

Some things we know. Some things we don't.

I know, for sure, that we should have a plan and we should stick to it.

Related posts:
1. Spotlight on Marco Polo Marine.
2. SPH: A REIT investment.
3. REITs: When to buy?
4. REITs: Are we asking the right questions?
5. Be cautious climbing the S-REIT tree.
6. Have a plan, your own plan.

N95 respirator masks for S$ 1.80 each.

Best price in Singapore!

20x N95 Masks for S$ 36.00.

To buy now, follow the link:
Great deals for half the price
(Click the button "Beat the HAZE!")

$3.30 Fillet-O-Fish meal and $8.00 QB House haircut.

In fact, you could get a Fillet-O-Fish or a Big Mac or a 6 piece McNugget value meal for S$3.30 each! Where in Singapore?

Unfortunately, not in Singapore but in Hong Kong.

Cheap!

When QB House increased their price from S$10 to S$12 here, I was taken aback. That was a 20% increase in price! Anyway, I soon got over it until I saw this:

Cheap!

HK$50 which is about S$8 only!

What did I do? Got myself a haircut and felt quite smug about it. Used the S$4 saved to buy myself a Fillet-O-Fish value meal and I still had 70c left over! Smug City!

Yummy!

We really have to travel to feel how strong the S$ is now and how expensive things have become in our country.

With the S$ so strong, is there more that can be done to reduce the cost of living in Singapore? I wonder.

Related posts:
1. Hong Kong: Ibis Hotel revisited.
2. Save money with low prices and free shipping.

Health Promotion Board: 6 steps to wearing the N95 mask.

If you have gotten your hands on a N95 mask, please wear it when you are out and about but please wear it properly:

Click to enlarge poster:

Not wearing it properly, we might end up inhaling all the particulate matter from the haze anyway. We don't want that.

Check latest PSI reading: NEA.

Related posts:
1. Buy N95 masks at Unity.
2. Buy 3M N95 masks for less.
3. Protect ourselves from the haze.

Oh, behaze!

My poor car is covered in ashes! It reminds me of the aftermath of a volcanic eruption I saw on TV once. This haze is almost as bad as an ash cloud. No, I think it is worse. This is an ash bath!

Look at my car and imagine people who sleep with their windows open and without air conditioning at night! They are breathing in all the ashes! This is terrible.

PSI: 323. 9am this morning.

PSI is at hazardous level again today after a brief respite last evening. Things look bad.

We need to do more seeding in the clouds!
Oh, behave! No, not that type of seeding!

Related post:
Best (funny) idea ever to combat haze!

Best (funny) idea ever to combat the haze!

I couldn't stop laughing! This is really funny!

Good one!

Source:
http://technology.xin.msn.com/home-entertainment/funniest-haze-memes-and-pictures#image=5

Related post:
Haze in the air and haze in PM's tweet.

Buy N95 masks at Unity Healthcare, Bukit Panjang Plaza.

I visited Bukit Panjang Plaza this evening and found that Watsons and Guardian were both sold out of the N95 respirator masks (still).

Then, I saw a long queue outside Unity. The queue was VERY long and stretched to cover the shop fronts of the neighbouring 4 shops at least.

Apparently, Unity was rationing the N95 respirator masks so that no one customer could buy up the entire stock.

Hopefully, the supply situation will improve very soon islandwide.

Related post:
Buy 3M N95 respirator masks for less!

Buy 3M N95 respirator masks for less!

I need to get some good respirator masks to filter out particulate matter which are very small. These are particles that will enter the lungs and can affect the heart too, causing serious health problems.

I am asthmatic and I am beginning to feel the effects of this extreme air pollution although I am indoors in air conditioned environments most of the time. My eyes feel gritty, my nose is runny and I wheeze when I breathe. It is just terrible.

"Small particles less than 10 micrometers in diameter pose the greatest problems, because they can get deep into your lungs, and some may even get into your bloodstream.

"Exposure to such particles can affect both your lungs and your heart. Small particles of concern include "inhalable coarse particles" (such as those found near roadways and dusty industries), which are larger than 2.5 micrometers and smaller than 10 micrometers in diameter; and "fine particles" (such as those found in smoke and haze), which are 2.5 micrometers in diameter and smaller.

"Numerous scientific studies have linked particle pollution exposure to a variety of problems, including:

• premature death in people with heart or lung disease,
• nonfatal heart attacks,
• irregular heartbeat,
• aggravated asthma,
• decreased lung function, and
• increased respiratory symptoms, such as irritation of the airways, coughing or difficulty breathing."

Source: http://www.epa.gov/pm/health.html

Things do not look like they are going to improve anytime soon. In fact, it is getting worse! We must take action to protect our health and wearing an N95 mask is going to help.

An N95 mask is able to filter out particulates as tiny as 0.03 micrometer and it filters out at least 95% of airborne particles. However, I heard prices of these masks have doubled in Singapore! Profiteers!

So, I set out on a mission to find a source of cheap N95 respirator masks!

Click on the photo below and check it out:
Click on "OTHER OPTIONS" in the website and you will find an option for a box of 20 for only US$14.99!

Say "NO" to profiteers!

Related posts:
1. Protect ourselves from the haze.
2. Buy N95 masks at Unity Healthcare.

Haze in the air and haze in PM's tweet.

PM Lee tweeted for "Singaporeans to remain calm and look out for one another. I'm confident we can manage this if we stay united n work together."

OK, this sounds very nice but AK71 is maybe a bit slow or plain stupid. How is looking out for one another, staying united and working together going to manage the haze situation?

Do I sound negative? I do? Oh, dear. OK, I shall try to be more positive.

Looking out for one another:
"Hey, you there! Look out! You are walking through very bad haze! Try walking around it!"

Staying united:
"Listen up, we must not let some KNS Indonesian minister say that we behave like children. We must let our indignation unite us! KNN!"

Working together:
"Everyone, position your electric fans at home to face south west and switch them on to the maximum speed! We will blow the haze back to Sumatra! Show the world that when Singaporeans work together, we can be fantastic!"

Details, PM Lee, details.

Related post:
Singaporean are kicking up a fuss about a little haze!

Singaporeans are kicking up a fuss about a little haze!

Is this Indonesia's brand of diplomacy?

A senior Indonesian minister has hit out at Singapore on the haze, saying: "Singapore shouldn't be like children, in such a tizzy."

Coordinating Minister for People's Welfare Agung Laksono, who is coordinating his country's relief and response efforts, told a press conference on Thursday.

Earlier, he told reporters that Singapore said nothing when there was fresh air, but complained about the occasional haze.

"Singapore is like that. The border issue hasn't been settled, neither has extradition, corruption."
Asked about offers of assistance, he said: "If it's just half a million (dollars), better we use our own budget."

Source: Singapore behaving like a small child.

Imagine 2 people sharing a room having a conversation:

Si: "Aiyoh, you have been farting non-stop for days. It is affecting my quality of life!"

In: "You are behaving like a child! You say nothing when I didn't fart but complain about the occasional fart!"

Si: "Why don't I give you some money to see a good Gastroenterologist?"

In: "You think I have no money? If it is just $500, better I use my own budget." (But if you are offering $5,000, I will accept.)

Related post:
Protect ourselves from the haze.

Let your child have fun and a head start in life.

Sometimes, I pity primary school kids these days as they struggle through tons of school work and it is not just the amount of work either.

School work is more demanding these days in terms of the level of difficulty and anyone who has tried to do primary school math recently would know this.

For anyone with very young children, preparing them for the jungle that is the current day primary school is a prudent thing to do. It is important that children enjoy their childhood as well.

Therefore, if they can have fun and receive an early education at the same time, that is an efficient use of time. However, most of us are too busy with our work and too tired after work to do much else.

Enter ABCmouse Early Learning Academy!

These good people offer a full online curriculum from pre-school to kindergarten at very reasonable prices!

I have given their introduction the once over and it looks like something young kids would enjoy and learn from.

Take a look and decide for yourself with a free trial period of 30 days.

LIMITED TIME OFFER:
Celebrate Independence Day at ABCmouse.com!
 Take 53% Off an Annual-subscription. Our Best Offer for only $45!


Of course, being online, the school is portable! As long as you have an internet connection and a tablet PC, for example, your kid can go to school!

Give your kid a fun learning experience and a head start in life.

“Love the progressive activities! I don’t have to take the time to search for activities for my 3-year-old, and my 5-year-old just follows along when she’s playing by herself. So, I know everyone’s doing the right things for their ages!”

 

“My (2 year old) daughter loves this site! She has learned so much more than I thought she could learn at her age. ABC’s are her favourite things to do, and since I started her on this website she has learned to read words well above her age level."

Related post:
Teaching young children financial literacy.

Protect ourselves from the haze while in bed.

We spend 6 to 8 hours everyday in bed. While we can wear a surgical mask when we are up and about, it is more difficult to do so while sleeping. So, how do we protect ourselves from the haze while asleep?

Keep the windows closed and switch on the air conditioning, if available. Then, get ourselves a good air purifier and place it at the foot of our bed.

My Sharp air purifier at the foot of my bed.

It is positioned with the air intake panel facing the foot of my bed.
There is a HEPA filter on the inside.
HEPA filters are able to filter out smaller particles compared to traditional vacuum cleaner filters.

An entry level model like the one I bought costs a bit less than $200. I have had it for almost 2 years and I consider it money well spent since it protects my health.

This photo was taken while I was waiting at the traffic light earlier this evening.

This is not an advertorial.

Related post:
Singapore air pollution reading: PSI 170!

Singapore air pollution reading: PSI 170!

PSI at 170! OMG!

Last night, I went cycling. After half an hour, my eyes were feeling gritty and I was feeling the onset of throat irritation. It was terrible.

Thank goodness I never open the windows of my room!

My air con and air purifier are on whenever I am in my room. Otherwise, with my allergies, I think I would be hospitalised by now.

If you are interested in the latest PSI readings, follow this link:

Hourly updates of PSI readings (NEA).

This is definitely contributing to global warming.

Jetstar increased price by 33% in the last one year!

In recent years, when I flew budget, I would buy a drink which, although was relatively expensive, provided me with some comfort in the dry air of an airplane cabin.

Well, last week, I discovered that the drinks have gone up 33% in price compared to a year ago!

It was $3.00 before. Now, it is $4.00! Wow!
 

How many things in our lives have gone up 33% in price in the last one year?

Related posts:

1. Inflation hits fried bee hoon.

2. Inflation is not going away.

3. Inflation adjusted income plan.

When to be fully invested in the stock market?

I have been trying to catch up with many things after coming back from a working trip. One thing I have been trying to do is to get up to speed with reading The Business Times and reports from analysts.

It seems that 2,700 on the STI is something that many are touting as the level with strong support and some say that at that level the PER is very low which makes stocks a bargain. Some went as far as to say that if the STI should go to 2,700, they would be fully invested.

Personally, I do not know if the STI will go to 2,700 and although I will acknowledge that it is a level with strong technical support, I will also say that I do not know if the support will hold or break. So, does that mean that I will not be fully invested at 2,700 points? If I can help it, I won't be.

As prices fall, all else remaining equal, there is better value for money everywhere. If there is better value for money, why don't we buy? Simple, people expect prices to fall more. So, they will keep waiting. 

And if prices go up, they will tell themselves they should have bought but hope that prices would fall again so that they get to buy. If prices should fall again, they would most likely buy. This is why double bottoms are such powerful reversal patterns.

However, double bottoms do not always take place.

I am buying as prices retreat to supports but in smallish amounts. It is hard to say how much more and how long more prices would fall. So, unless we have an unlimited amount of cash, our own cash, we want to pace our purchases.

If our cash is very limited, it would make more sense to wait for the dust to settle and for sentiments to turn more positive before going back into the fray. 

Use charts to help in this respect. Look out for reversal patterns and positive divergences. Of course, bear in mind that charts are about probability and not certainty.

Having said this, if our investments are fundamentally sound and if we are not investing with money that we cannot afford to lose or money that is not ours, simply holding on and riding out the turbulence in the stock market isn't all that bad an idea now.

With central banks around the world bent on getting their economies back on their feet, the likelihood that things will improve is greater than otherwise. Businesses will benefit and stocks will reflect that. 

If I should be wrong and the whole world plunges back into recession or worse, things are pretty much hopeless then as the financial system as we know it would collapse and we could very well see a big reset that some gurus like Marc Faber have talked about.

So, am I being an optimist? 

No, I am being a pragmatist. 





Since chances are that the global economy will improve, given time, it pays to stay invested. 

However, recognising that things could take a bit more time to improve, it is not a good idea to be fully invested. Not now and not if the STI goes to 2,700.

When to be fully invested in the stock market? Probably never.

Related posts:
1. If we want peace, prepare for war.
2. AK71's simple strategy.
3. CPF or SGS?
4. Art of wealth accumulation.
5. Books for FA and TA.

After "After Earth"?

I just found out that "After Earth" is a box office flop. Is it that bad? I was thinking of watching it.

Apparently, Will Smith is quite affected and has decided to quit acting in blockbusters. This movie was his project and his son was the co-star.

I thought the movie trailers look quite good.



Not bad, right? I like the theme.

I have always enjoyed movies which are based on some kind of scientific theory. For example, a movie which I enjoyed a lot was "The Day After Tomorrow".

I feel that the extreme weather conditions we are seeing in the world today definitely has to do with climate change and the movie gave a glimpse of what could happen eventually. See: Just storms?

Related post:
A movie by M. Night Shyamalan: The Last Airbender.

S-REITs: Are we asking the right questions? (UPDATED)

A friend asked me if S-REITs are bad investments now? Why are people selling down S-REITs? 

He is somewhat concerned about his investments in S-REITs and was hoping that I will tell him what to do, I guess.

Well, I cannot and will not tell him what to do. He has to decide for himself. 

Before he can decide for himself, he has to understand his motivations for being invested in S-REITs in the first instance.





If his motivation was for income, then, ask if S-REITs still do a good job of providing regular income. 

If his motivation was for capital gain, then, he should have set a target and perhaps sold his investments when prices declined by 10% from the top, for example.

People get confused when they don't know what they want.

For me, my remaining investment in S-REITs is for income. 

Apart from Saizen REIT which could see income distribution in S$ affected by the much weaker JPY, I do not see income being affected negatively in the other S-REITs I am vested in. 

Well, at least not in the next few quarters.







So, why are people selling down S-REITs? 

There are many explanations and there has been much said about how sensitive S-REITs are to interest rates. 

An increase in interest rates will be bad for S-REITs in more ways than one. 

This is all true. 

However, we have to question also if an increase in interest rate is imminent and also if S-REITs will be immediately affected. 

Personally, I do not think so.





Of course, Mr. Market does not care what I think. This is a good thing. 

As Mr. Market goes into a manic depression, he is going to offer S-REITs at lower and lower prices. 

This means distribution yields will go higher and higher, everything else remaining equal.

Could we see S-REITs trading below NAVs once again? I have no idea but it could happen. 





If it should happen, we would have a chance to buy productive real estate at a discount once again. Guess what would I do then?

As S-REITs' unit prices climbed higher, I warned that we should be careful and not be too optimistic. 

Now, as S-REITs' unit prices decline, I will remind everyone not to be too pessimistic.

Always ask the right questions and we will know what to do.






Related posts:
1. Wealth creation in the stock market.
2. Never lose money in S-REITs?
3. Be cautious when climbing the S-REIT tree.

Investing in the stock market makes you a gambler!

A friend told me that he found it hard to explain to his parents that investing in the stock market was not gambling. 

They were always telling him to stop gambling in the stock market. 

To that, I said that his parents were right. 

He was shocked.

Why did I say that?

Well, all of us have our own perceptions and, to us, our perception is reality. 

Remember the story about the frog and the fish which shared a pond? 

When the frog told the fish that there was a different world outside the pond, the fish didn't believe the frog.

So, I told my friend that his folks were probably not able to understand concepts they had never heard of in their lives unless we put across the ideas in a way that they could relate to in everyday life.




I came up with this:

Try telling them that many rich people got rich through having successful businesses. 

I think they can understand this. 

Just give them some local examples which they are familiar with. Breadtalk and Old Chang Kee, perhaps.

So, if they want to be rich, they could start businesses too and hope to succeed. 

However, it is probably very risky and most of us do not have the capital, the know how or even the inclination to start our own businesses.




Of course, they could always be partners in a business venture and hope that the managing partners are capable enough to succeed and honest enough to share the fruits later on.

Now, at this point, tell them that the stock market is filled with businesses which they can become "partners" in. 

They just have to pick the right businesses. 

Right businesses? 

Yes, the ones with capable and honest management who are likely to succeed and share the fruits with them.




Well, my friend talked to his parents again and told me that although his parents are still sceptical about the stock market, they agreed that what he is doing seems less dicey compared to gambling. 

Of course, there is more to investing than what has been said but it is a start and my friend is happy enough.

If you find yourself in the same boat as my friend, you might want to give this approach a try. 

It could work for you too.

Related post:
Wealth creation in the stock market.

June holidays go where? Bangkok?

Some of us book holidays way in advance to get better prices. Well, if you did not do this and if you are thinking of an impromptu trip this month, you can still get very good deals!

4D3N Free & Easy Stay at FX Furama Makkasan Hotel, Bangkok - Includes Return Flight + 2-Way Airport Transfer. $168.00.

3D2N Free & Easy Stay at 5-Star Amari Watergate – Includes 2-Way Air Ticket by Tiger Airways + 2-Way Airport Transfer . S$ 277.00

Go on a trip with your family and enjoy Bangkok! Where to find such good deals?

Follow this link to enjoy: Discounts!

Related post:
Value for money holiday ideas!

AK71 bought healthy lunch!

Yes, I didn't just have a healthy lunch, I "bought" a healthy lunch.

For those who say I am not helping the economy by bringing my own food to work everyday, today, I did a good thing for the economy! I bought lunch from the canteen!

Brown rice with a big piece of tofu and lots of green chilli.

Brown rice is a good source of vitamin B. It is high in fibre and has low glycaemic index.  Tofu is a good source of protein without the cholesterol. Green chilli is good because it is, er, free!

Cost: $2.20

Related post:
Having an extra $1,200 a year!

Polish your own car and save money.

For those of us who drive, it is quite common to see those kiosks in car parks which offer to wash and polish our cars for $40 or so. Then, if we become "members", we get a member price ($28?) and this would involve signing up for a "package" which requires us to pay in advance for a few sessions.

I have always wanted to try these and approached one kiosk a couple of weeks ago. The old uncle manning the kiosk put me off with his attitude. Business was very good, I guess.

Anyway, after almost 3 years, the bonnet of my red colour car was looking washed out. Seriously, it puzzles me why the bonnet was the only part of the car that looked like it was dying. The rest of the car, after a good wash, would still look pretty good.

Yesterday, when I went shopping with my sister, I decided to buy a bottle of car polish. I didn't want those heavy wax type which I have used before for my previous cars. Those really worked up a sweat. I saw on TV that they have those spray on ones. Spray, spread and buff. Looks easy. Cost: S$12.00 only.

I went home, washed the bonnet and proceeded to spray, spread and buff. Since it was the first polish in almost 3 years, I did it twice over and when I was done, I was perspiring. Good work out!

The car looks better now although not showroom condition.

I am sure I still have plenty of polish left in the bottle. Should last a few more years.

So, if you are thinking of giving your car a polish, maybe you could try doing it yourself this weekend. Save money and get a good workout at the same time.

Used car dealers in Singapore: Any recommendations?

I have a very good friend who is thinking of buying a used car. For some reason, he thinks that I would know something about buying used cars. I think it is because I am such a frugal person.

Unfortunately, when it comes to cars, my preference has always been to buy new. I know. I am terrible in this department.

Anyway, this is a call for help. Please share any recommendations or warnings which you might have about used car dealers here in Singapore.

I guess this could also be a resource for readers who might be looking to buy a used car in the near future too. So, although it has nothing to do with investments and with being financially prudent, here goes my cry: HELP!

一百万 : $1,000,000!

Since I am in the mood, here is another Hokkien song. This one has English subtitles:



"I will buy a car, a house, a shop to collect rent, lead a carefree life, walking the dog!"

Related post:
Be happy!

欢喜就好 - Be happy! (UPDATED.)

This is a song I have always enjoyed.

Apologies to readers who do not understand Hokkien or could not read Chinese.






To those who understand, I hope this brightens up your day. :)

On any issue, there will always be different opinions out there.

On any policy, some will say it is good and some will say it is bad.

It is important to remember that opinions are not facts. 





We would do well to search out the facts and not be swayed by opinions.

AK anyhow talking to himself as usual.

Be happy!





Related posts:
1. A simple concept.
2. Happiness in 2012.

Where did I go wrong? Reply from AK71.

Hi JB,

Thanks for taking the time to write everything in such great detail. I will have to tell you that I am not qualified to give advice or guidance. I can only share my opinions.

Regarding "high could go higher" and "cut loss", these are things we hear people who trade the market using TA might say. They are not wrong but if we choose to learn the techniques of any school, we must learn them well.

I am not well versed in this school but I know that what the school teaches has worked for many people. Just have to follow the rules. For one thing, a stop loss is probably activated when prices fall 10% and not 50%. So, I guess you maybe didn't have enough practice and you didn't master the techniques. Perhaps, you did not have the discipline to follow the methods taught by this school.

As for China Taisun, it is easy to simply generalise S-Chips as untrustworthy and to avoid them at all cost. Indeed, that is the easiest approach to S-Chips. If we cannot trust what they show us in their books, then, how do we do any FA on them?

However, I am not saying that all S-Chips are bad and I have invested in some as well with good results. What I have done that is crucial in my S-Chip investments is that I limit their size. Combined, they are never bigger than 10% of my entire portfolio.

FA is important but it is also equally important not to put all our eggs in one basket. Things could go wrong even in the best companies. Even blue chip companies are not invincible. Think Chartered Semicon. I believe that if your exposure to China Taisun had been smaller, it might have been less traumatising for you.

You might actually have thought of the things I have shared here. Nothing mystical. Just a bit of common sense. :)

All of us are made differently. Some of us have the temperament to be traders and some to be investors. So, we must know ourselves.

As for FA, learn from an expert. Go to my blog's right sidebar and you will find a section labelled "Food for Thought". There are many good options but you might want to zoom in on "5 rules for successful stock investing" for starters. :)

Read JB's letter to me: here.

Related posts:
1. What should I do? A letter from a 64 year old retiree.
2. 5 rules for successful stock investing.