Year: 2013

My Investment Portfolio

Manulife US REIT
For the past two years, I have been doing research on local stock market and is now in the midst of constructing an investment portfolio consisting of stocks and bullion.
I had stayed out of the stock market since 2010 because I just don’t see any value in the market for the past three years. Many counters with good business fundamentals are, in my opinion, overvalued. Under this bullish climax, I had resisted the temptation to invest many times because of the lack of margin of safety in many of the local stocks.
As the saying goes, you stand a higher chance identifying value stocks during bear market as compared to a bull market.

Singapore economy

Notwithstanding the bullish market, I decided to compile a list of stocks which I would invest in during crisis times. They would become part of my investment portfolio. These are companies with strong cash flow, sustainable revenue and easy-to-understand businesses. Essentially, these are companies which will still be around 10, 20 and 30 years down the road. I am still doing research and will reveal the companies in due time. Nonetheless, I noted that three of the companies (Genting Singapore, Capitaland and Noble Group) are listed in the STI Index. I am not surprised because these are well-managed and established companies that are well-covered by stock analysts.

Drawing on my previous experience on stock investing, I have made a commitment to change the way I invest in stocks. I realized the need to keep my emotions in check and perform more in-depth analysis before parting my money. Hence, going forward, readers can look forward to more of my stock analysis in this blog.

On 12 Sep 2013, Singapore Press Holdings (SPH), Singapore Exchange Limited (SGX) and FTSE Group (FTSE) announced that constituents of the Straits

Investing in Gold

The sky is falling for India’s rupee, which has fallen 20.1% since the start of this year. The currency has slumped the most in two decades to a record low in the wake of government’s economic mismanagement and failure to tackle deteriorating infrastructure. The frightening slide in the currency has conversely led to a incredible hike in demand for gold in India. According to the World Gold Council, in the first half of 2013, India accounted for a staggering 28% of global consumer demand. The 566.5 tonnes of gold bought by Indians way surpassed Americans’ 83.4 tonnes purchased.
The reason why Indians crave for gold is because consumers buy the yellow metal for auspicious reason during their wedding and festival season, which will start in November and last till January. It is estimated that Indian household currently hold 31,000 tonnes of gold worth a massive USD$1.3 trillion at USD$1400 per ounce. In order to reduce its trade deficit, Indian government has been trying hard to curb gold imports by hiking the metal’s import taxes.
gold bullion
Import duties were raised to 6% in late January and then 8% in early June and then subsequently 10% in August. The same tax is also applicable to silver and platinum to fight substitution. Despite these measures, Indians are still buying gold aggressively. The tariffs have only fuelled a boom in gold smuggling!
Since United States started its quantitative easing (QE) program, interest rates all over the world remain low. Logically speaking, given the low interest rates environment, inflation should hike due to the decrease in purchasing power of currency. Nevertheless, the hyperinflation has not taken place as expected, according to official data released by various governments. Well, only if you choose to believe in the statistics compiled. According to Arabian Money, there is

SGX Stock with Favorable Yield

Below is an article from guest blogger, Richard who works as a stock analyst and has 3 years of experience in the stock market. He likes to write articles and hope to share his experiences with investors in Singapore If you would like additional SGX Dividend Stocks data, information or screening tools, please visit website http://sg.dividendinvestor.com, a leading source for in-depth research and analysis for stock investments.

SG Wealth Builder does not accept any liability whatsoever for any direct, indirect or consequential losses or damages that may arise from the use of information or opinions in this article. The information and opinions in this publication are not to be considered as an offer to sell or buy any of the securities discussed. Opinions expressed are subject to change without notice.
  
Singapore is a well-known country for integrity, reliability, quality, productivity, rule of law, and enforcement of intellectual property rights. These things are crucial in the knowledge economy. The country is also a good place for foreign investments. It is a one-stop agency which facilitates and supports local and foreign investors in both manufacturing and services sectors, as they move up the value chain to achieve higher sustainable returns and seek out new business opportunities. I am sharing a brief description about one of the sgx dividends which is performing well from past five years. 

OSIM International Limited is a Singapore-based company which is engaged in marketing, distributing and franchising of healthy lifestyle products. It creates designs, develops and markets well-being lifestyle products through its specialty retail outlets worldwide. The products of the company include message chairs, foot massagers, neck & shoulder massagers, head massagers, fitness equipment, diagnostic equipment, vitamin & supplement and luxury tea.

The company has divided into business into two segments. The first is retail and the …

Investment Outlook for Boustead Singapore

sgwealthbuilder

Boustead Singapore has risen by 45% for the past 12 months. The P/E and P/Cash flow ratio are estimated by S&P Capital to be 12 and 10.8 respectively. These metrics suggested that the stock is currently expensive. The good thing is that net gearing remains at 0%.

Although this counter seems overvalued, fundamental business prospect still looks good. Boustead Singapore is a global engineering specialist in energy, water infrastructure, industrial real estate and geo-spatial solutions.

The main driver for the business is the real estate division, which contribute 24% to its top line in Q1FY14 to SGD101.2 million. Oil and gas division is the second main contributor, reporting revenue growth of 38% year-to-year. Water infrastructure and geo-spatial technology were the weaker divisions, reporting negative revenue growth of 25% and 14% respectively.

Stock investing

I like Boustead because it is financially strong with net current assets of $150 million. The company has consistently paid out dividends to shareholders for the last ten years and it is well-managed with sound corporate strategies. Although Boustead has no formal dividend policy, it has a tradition of paying dividends linked to long-term net profit growth.  Boustead has achieved respectable growth in dividends over the past ten years, with a compounded annual growth rate of 21% over that period.

Their history of annual dividend payments:
1)Ten consecutive years of dividend payments;

2) Growth in the ordinary dividend to 5 cents per share in FY2012 after maintaining the ordinary dividend at 4 cents per share for four consecutive years; and

3) Paying a total of 33.75 cents in cash dividends over ten consecutive years, equivalent to almost 200% of the purchase price of the Boustead share at 17 cents at the beginning of FY2003.A key development that investors should take note is that the group is acquiring Ausgroup’s Singapore

Best Singapore Stock to Invest Today

Below is an article from guest blogger, Richard who works as a stock analyst and has 3 years of experience in the stock market. He likes to write articles and hope to share his experiences with investors in Singapore If you would like additional SGX Dividend Stocks data, information or screening tools, please visit website http://sg.dividendinvestor.com, a leading source for in-depth research and analysis for stock investments.

Disclaimer: SG Wealth Builder does not accept any liability whatsoever for any direct, indirect or consequential losses or damages that may arise from the use of information or opinions in this article. The information and opinions in this publication are not to be considered as an offer to sell or buy any of the securities discussed. Opinions expressed are subject to change without notice.

The Government of Singapore adopts an open door policy and welcomes foreign investors. It believes that by attracting multinational companies to invest in Singapore, the county can overcome the handicaps of size, small population and lack of natural resources. The multinational companies in Singapore have brought technological and managerial skills, access to new markets and investment capital to Singapore.

According to the 2010 report a total of s$12.9 billion of foreign investments was committed. Investors should focus on the K1 Ventures while building a portfolio of ex dividend calendar Singapore stocks.  Let’s read more about the company. 

Profile

K1 Ventures Limited is a diversified investment company in Singapore which is originally engaged in engineering and anchorage repair activities. The company has invested in diverse sectors which include transportation leasing, education, oil and gas exploration, financial services and automotive retail. The company prefers to make investments through a mixture of debt and equity financing and will take a minority or controlling position based on each investment and such investments

SGX Stock: Offering Attractive Yield

SembCorp Marine
Below is an article from guest blogger, Richard who works as a stock analyst and has 3 years of experience in the stock market. He likes to write articles and hope to share his experiences with investors in Singapore If you would like additional SGX Dividend Stocks data, information or screening tools, please visit website http://sg.dividendinvestor.com, a leading source for in-depth research and analysis for stock investments. 
The economy of Singapore is mainly supported by the activities in the manufacturing and services sectors. The manufacturing activities account for about a fifth of the country’s overall Gross Domestic Product (GDP) while the services sectors contribute approximately two-thirds of GDP. The country is actively promoting the growth of the quaternary sector of its economy i.e. the knowledge-based part. I am sharing about one of the Singapore Dividends which will make profit for investors who are seeking to invest in SGX stocks.
SGX
Singapore Press Holdings Limited (SPH) Profile
Singapore Press Holdings Limited is a media organization in Singapore with businesses in print, Internet and new media, television and radio, outdoor media and property. It is engaged in publishing, printing and distribution of newspapers, distribution of magazines and books, providing services of multimedia content, holding shares in subsidiaries, holding investments and providing management services to subsidiaries. It publishes 18 newspapers titles in four languages. The company has over 4,000 employees, which include a team of approximately 1,000 journalists, including correspondents operating around the world. 
SPH Magazines a subsidiary of SPH publishes more than 100 periodicals in Singapore and the region. Its flagship newspapers include the Straits times, the English language daily and Lianhe Zaobao, the Chinese-language daily. It is one of the country’s “blue-chip” counters on SGX, and makes about s$480-500 million worth of profits every year. 
History 
Singapore Press Holding Ltd was

New credit card rules in Singapore

Personal finance
In recent years, there were various articles on increasing trend of Singaporeans defaulting on their credit card payments. I think this is a worrying sign in Singapore. Below is a press release on a new government policy to curb lending practices by local banks.

11 September 2013
The Monetary Authority of Singapore (MAS) has finalised changes to credit card and unsecured credit rules aimed at improving lending practices by financial institutions and enabling individuals to make better borrowing decisions.

2. The policy changes follow a public consultation, in which respondents generally supported the proposals. MAS has taken the public feedback into consideration and adjusted the proposals where appropriate. Details are set out in the responses to feedback received on the consultation paper.

3. The key policy changes are as follows:
(a) Financial institutions will be required to review a borrower’s total debt and credit limits before granting a new credit card or unsecured credit facility, or increasing the credit limit on such facilities. This is to enable a more realistic assessment of an individual’s borrowing capacity.

(b) Financial institutions will be required to disclose to individuals who roll over their credit card debts and revolving credit facilities the potential cost of doing so and how the debt will accumulate. This will help borrowers make more informed credit decisions, taking into account the total cost of borrowing.

Personal finance

(c) Financial institutions will be required to obtain a borrower’s express consent for the amount of each credit limit increase. This will ensure that credit limit increases are not extended to borrowers unless they agree to such increases. This includes outstanding debt on and credit limits of all credit cards, charge cards, unsecured loans as well as secured loans across all financial institutions.

(d) Financial institutions will not be allowed to grant further unsecured

Value Investing in Growth Companies

One of my readers recently wrote to me requesting my views on a few Reits in Singapore. I have not replied him but followers of my blog would know that I don’t believe in Reits and have never invested in any Reits before. This is because the business model is too complicated for me to understand. In this article, I will share my thoughts on value investing.

One of the most important things that investors have to realize is that a good stock must have a simple business that are easy to understand. For example, we know that Super Group sell instant coffee and SingTel provides telecommunication services. Many investors, especially the novice ones, rush to invest in Reits simply because they thought that Reits provide dividends, so Reits must be a form of good dividend. They fail to understand the real business model and if you prodded them further what is Reits all about, they would be clueless. It is like putting the cart before the horse and missing the forest for the woods. To this end, I will like to recommend a good investment book for my readers.

A Unique Guide to Wealth and Financial Independence Using Value Investing Strategies

Many people spend their life working for active income. They are either ignorant or skeptical about stock investments. Even those who have invested their money, more often, entered into less effective methodology of making money in the stock market. They go for quick money gains and end up losing their net worth by speculating in the market. However, according to authors Victor Chng and Rusmin Ang, the odds can have a better likelihood if one knows what sustainable methodology to use.

In their newly revised book, Value Investing in Growth Companies: How to Spot High Growth Businesses and

BullionStar Review: The 5 stage life cycle of a fiat currency

The 5 stage life cycle of a fiat currency This article is extracted from BullionStar, a Singapore online bullion company where you can buy gold and silver at competitive prices.

Gold and paper currencies have been at war for more than three thousand years. When currencies were pegged to gold, they appeared to coexist peacefully. Nevertheless, when the peg ceased internationally, they became each other’s nemesis and thus began the battle for monetary supremacy. A study on the history of money, and its relationship with inflation, is essential to appreciate the role of gold as money.

For paper currency, there is always a boom-bust cycle. It often begins with the healing of a country’s economic woes and promises of prosperity for all. To better illustrate how the boom-bust cycle works, one can draw reference to the recent economic history of United States. In the late nineties, US technology stocks formed a huge bubble mainly because of over leveraging of debt through low interest rates. Start-up technology companies with mediocre or even negative earnings were valued in the millions. After the crash, which coincided with the terrorist attack on New York, interest rates were lowered again to spur economic growth, forming another bubble in housing. When the housing bubble burst, it almost took down the whole world’s banking system with credit facilities drying up, thus triggering the global financial crisis in 2008. With interest rates kept near zero, special measures in the form of money printing were needed to boost the economy and create jobs.

These cycles have been repeating for centuries. According to Nick Barisheff’s $10,000 Gold, it seems that countries that broke peg with gold standard and introduced fiat currencies go through a five-stage cycle.

Stage 1 is fuelled by optimism and euphoria as politicians promise growth stimulus with the least amount of pain and discipline. In the beginning, there

Five SGX Stocks with Low Risk and High Yield

AEM share price

Below is an article from guest blogger, Richard who works as a stock analyst and has 3 years of experience in the stock market. He likes to write articles and hope to share his experiences with investors in Singapore If you would like additional SGX Dividend Stocks data, information or screening tools, please visit website http://sg.dividendinvestor.com, a leading source for in-depth research and analysis for stock investments. 

Singapore has many advantages of investing money. It’s strongly pro-business environment provides an efficient infrastructure and a transparent administration. The economy of Singapore is committed to free market development and free trade. The investors who are looking for Singapore Dividends these stocks will be helpful for them. 

SGX

Hafary Holdings Ltd (SGX: 5VS)

It is an investment holding company. With its subsidiaries the company is engaged in the supply of premium tiles, stones, mosaic, wood flooring and sanitary wares and fittings to customers in the Singapore market. It has two operating segments: General and Project. The Project customers include architecture firm, property developers and construction companies. On July 2, 2013 the company incorporated a SPV in Singapore, World Furnishing Hub Pte. Ltd.

It has a market capitalization of 90.09 Million, EPS is 0.07, P/E ratio is 3.15 and the dividend yield is 14.88% at the annual dividend payout of 0.03. 

Transit-Mixed Concrete Ltd (SGX: 570)

Transit Concrete Ltd is a Singapore-based investment holding company. It is engaged in the activities relating to the supply of ready-mixed concrete and the trading of raw materials for the production of ready-mixed concrete. It has three operating segments: Ready-Mixed Concrete, Concrete Pumping Services and Waste Management. During the fiscal year ended February 29, 2012 the company acquired the remaining 33.33% interest in Chain Hua Singapore Pte Ltd.

It has

Why Gold will Rally

gold

This article is extracted from BullionStar, a Singapore gold and silver bullion company where you can buy gold and silver at competitive prices.

The collapse in gold price from a high of USD$ 1,900 per ounce in August 2011 down to USD$ 1,340 has led many investors to wonder whether gold will continue its downward spiral.

One of the most powerful price indicators is the net positions by professionals who hedge gold. These hedgers are not those speculators or traders in the commodity market, but rather, most of them are legitimate hedgers who are owners of mining companies. They use options and futures contracts to hedge their position, to ensure a positive fiat-margin on the mining.

Bullion
If they don’t hedge, it is usually an indication that the market will turn bullish because these hedgers hope to profit from a rise in the price of the commodity. Conversely, if there is an increase in the net short position, it would be an indicator of a bear market looming.

Currently, the hedgers are the least net short in a dozen of years. This means that they have not been so bullish on gold since it was priced at USD$ 300 per troy ounce. If you choose to follow these insiders, now would be the time to buy gold.
Most wealth builders buy physical gold to diversify risks in their portfolio. They understand the importance of balancing return with risk and hence, buy bullion to mitigate the potential correction in the stock market or wild fluctuations in the currency exchanges.

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Magically yours,

SG Wealth Builder

Build a New Investing Brain

CPF monies
Since young, I always thought that there must be a scientific approach towards investing. I don’t believe that intelligence play a part when it comes to investing because I have seen many smart professionals lost their hard earned money in the stock markets. I have also seen not-so-educated friends making huge piles of money from their investments. So the perennial question: is investing a form of art or science?
While we cannot change the external environment, we can certainly control our own thoughts and actions. Many people mistakenly thought that the market is our greatest enemy. Actually they are wrong. The greatest enemy is yourself. Your decisions, thought processes, actions and personal experiences shape your investment destiny. To truly succeed in investing, we must know our own self and do self-assessments. Otherwise, it will be very hard to change the way you think in order to change the way you invest.
 Wealth

As an investment advisor to high net worth individuals, Wai-Yee Chen has spent years watching her clients make investment decisions—some good decisions and some not-so-good decisions. Though confronted by the same market variables, those clients often make very different choices with very different results. Here, Chen argues that it’s usually not the data that affects investor decision-making as much as the way investors themselves think. In NeuroInvesting, Chen argues that investors can change the way they think in order to change the way they invest. She presents four elements that affect investor decision-making and reveals how investors can rewire their brains to make better investing decisions for better returns.

  • Uses neuroscience to explain how successful investors think different
  • Written by an experienced investment advisor who works at one of Australia’s premier retail brokers
  • Explains investing using real-world stories about investors from an advisor’s perspective

When it comes to

BullionStar Singapore: Strong Buy Signal on Gold

This article is extracted from BullionStar, a Singapore online bullion company where you can buy gold and silver at competitive prices.

Crisis? What crisis? One could be forgiven for thinking that the plunge in gold price during the second quarter of 2013 could spell the end of one of the longest bull-run for the world’s gold markets. But apparently this was not the really the case, at least not for physical gold. According to the May 2013 press release from The World Gold Council (WGC), demand for bullions and jewellery, which makes up of 72% of global demand, has seen a surge following the mid-April price fall. This has left many retailers in China and India running out of stocks and refineries having to introduce waiting lists for buyers. On the other hand, gold-backed ETFs have seen outflows of 350 tonnes out of a total of 2700 tonnes held, from January to end of April.

The divergence in behaviours reflects the dichotomous nature of investment in gold, with consumers who prefer bullions and jewellery behaving very differently from investors of paper gold. This phenomenon indicates that even if there is an outflow of investments from the paper gold market, there will be always be a ready market among Indian and Chinese consumers. This is because the global appetite for gold is driven by Asian consumers, who remained confident in the long term prospects for gold. Indeed the profile of physical gold investors differs from paper gold investor. The former usually views gold as a safe long term investment for hedging against systemic bank failures and for decreasing portfolio performance volatility. The latter consists of investors who dabble in paper gold and are usually traders or speculators holding short term investment horizons with a view to trade gold for quick returns.

Biosensors reported poor Q1 FY2014 results

sgwealthbuilder
Biosensors total product revenue for the quarter ended 30 June 2013 decreased by 6% to US$65.0 million from US$69.0 million recorded in the previous year’s corresponding quarter.
Total interventional cardiology revenues decreased by 7% to US$60.9 million in the quarter ended 30 June 2013 from the US$65.7 million reported in the previous year’s corresponding quarter due to a drop in the Group’s drug-eluting stents (“DES”) sales mainly as a result of the Group’s efforts in reducing distributor channel inventories in China in anticipation of China new tenders pricing taking effect.

Biosensors continues to see strong, double~djgit sales growth in EMEA and Asia Pacific regions. Sales of critical care products remained constant at US$3.4 million in the quarter ended 30 June 2013, compared to US$3,3 million in the previous year’s corresponding quarter.

Total revenue, including licensing and royalty revenue, for the quarter decreased 11% to US$76.6 million from US$86.3 million in the previous year’s corresponding quarter. The table below shows the Group’s revenue and the principal components of the revenue, as a percentage of total revenue, for the periods indicated:

stock market

Cost of sales and gross profit:
Overall gross margin for products was 75% for the quarter ended 30 June 2013, compared to 81% for the previous year’s corresponding quarter. Gross margin reduction was attributable mainly to our distribution activities in Japan for the Nobori stents, coupled with the consolidation of the Group’s newly~acquired Cardiac Diagnostic Business, which has a lower gross profit margin.

Operating expenses:
The Group’s total operating expenses for the first quarter were US$41.9 million compared to US$39.5 million for the first quarter in the previous year, an increase of 6% over the prior year’s corresponding quarter.

  1. Sales and marketing expenses
    Sales and marketing expenses increased 19% to US$26.6 million for the quarter ended 30 June 2013 compared to

K1 Ventures Declared Dividends of $0.02

sgwealthbuilder
K1 Ventures shareholders’ funds increased from $338.7 million at 30 June 2012 to $349.9 million at 30 June 2013. The increase was attributable to profit for the year of $54.6 million offset in part by dividends paid to shareholders of $32.5 million and other comprehensive expense of $10.9 million.
The profit for the year ended 30 June 2013 was primarily attributable to a net profit of $19.3 million from the sale of the Group’s investment in McMoRan Exploration Co. (“MMR”) and $27.7 million of investment income from Knowledge Universe Holdings LLC (“KUH”). The other comprehensive expense for current year was mainly attributable to the sale of MMR as the value was realized and transferred to profit & loss.
Stock investing
K1 Ventures total assets of $638.1 million at 30 June 2013 increased by $10.6 million compared to the previous year end driven by cash distributions received from investments including the sale of MMR, partially offset by dividends paid to shareholders. The increase in fixed assets resulted from the purchase of rail
equipment and locomotive upgrades at Helm. The decrease in investments mainly arose from the sale of MMR. The decrease in stocks was mainly due to the disposal of held for sale six-axle locomotives.Group total liabilities of $256.1 million at 30 June 2013 were $1.5 million lower than the previous year end. The increase in provision for taxation includes $10.4 million attributable to the sale of MMR during the current year. This includes a reversal of $6.2 million deferred tax liability recorded at the prior year end.REVIEW OF GROUP PERFORMANCE

K1 Ventures’ revenue of $168.0 million for the year ended 30 June 2013 was $89.3 million above the prior year driven by $55.6 million from the sale of the Group’s investment in MMR and an increase in investment income of $18.9

Billionaire Kwek claimed that home prices may slip 5%

Over the last two weekends, my wife and myself visited private condominium showrooms of D’Nest, Urban Vista and Q Bay. We were not planning to purchase our second property at the moment but is visiting the showrooms just to have actual sensing of the market. Even though there has been much media coverage on the state of private home in Singapore in recent years, we feel that “seeing is believing”. It is more important to have actual sensing of the market because that will provide better picture of the market dynamics.
Well, according to an article in PropertyGuru, Executive Chairman of City Developments Limited (CDL), Mr Kwek Leng Beng forecasted that private home prices in Singapore are expected to drop by up to five percent due to an oversupply of residential properties from 2014 onwards. He went on to state that private home prices would likely drop by five percent from now until 2014 if all the cooling measures implemented by the government remain in place. He urged the government to lift some of its cooling measures, such as the two year “qualifying certificate”for developers. With these qualifying certificates, it will be suicidal to keep buying land at high prices just because we want a land bank,” Kwek said.
SG Wealth Builder

To put things into perspective, the current housing situation is not truly due to demand and supply dynamics. The private home market has witnessed huge gains in prices in recent years because of the hot money flowing from foreign countries such as United States and China as a result of loose monetary expansion. Cash rich investors poured in funds to pump up prices of local private homes. Therefore no matter what policies that are going to be or have been implemented by government, they will have limited effectiveness to cool the

Record Bankruptcy for US City, Detroit

This article is extracted from BullionStar, a Singapore online bullion company where you can buy gold and silver at competitive prices. 

On 19th July 2013, Detroit became the largest city in United States history to file for bankruptcy protection after piling up debt of more than USD$18 billion. For more than a decade, the city has been borrowing money to pay for its expenses and fund its expensive pension system. Apparently, the breaking point came about after Detroit failed to reach agreements with the bondholders and creditors to restructure the city’s debt out of court.

People who are familiar with The Federal Reserve’s money creation process would not be surprised by Detroit’s bankruptcy. Since President Nixon decoupled the link between gold and the U.S dollar in 1971, it effectively ended any form of gold peg internationally. Without any convertibility to gold by any currency, governments all over the world are free to create as much fiat money as they wish without any restriction. As a result, debt levels began to climb. At this point of writing, U.S debt alone amounts to more than USD100 trillion.

The dire consequence of our current debt-based system is that it could get out of control, resulting in hyperinflation and social security problems. Today, Detroit faces the tricky problem of obtaining bailout from the Federal government because of its credit rating junk status. Unemployment and crime rates in the city are high. Creditors are expected to wrangle with the pensioners for the city diminished wealth. Henceforth, BullionStar believes that in such a scenario, there could be complete loss of personal wealth, unless that wealth is held in gold.

The Myths about Gold Bullion

gold
This article is extracted from BullionStar, a Singapore online bullion company where you can buy gold and silver at competitive prices.

Despite the surge in financial risks during the Great Recession, gold bullion continues to be absent in most institutional and individual investment portfolios. Global pension funds and insurance companies with trillions of dollars’ worth of assets continue to overlook gold as a form of sustainable wealth protection insurance. Many individuals have also misunderstood gold and ignored the substantial benefits of owning gold. All these misconceptions are due to the prevailing myths about gold bullion ownership.

Bullion
One of the top myths is that gold is a bad investment compared to equities. This myth seems to have its roots in the 1979-1980 rally when gold reached $850 per ounce. Those who had bought gold during this peak cycle would have to wait for about twenty-eight long years in order to break even. However, those who bought gold on 15 August 1971, when President Nixon cut the link between gold and the dollar, would have a different story to tell. Gold was priced at $38.90 per ounce and those who purchased at that time would have enjoyed a gain of about 5000 percent, surpassing Dow Jones gain of about 1500 for the same period. So the moral of the story is, if you buy any form of investment at a cyclical peak, you will have to wait a long time to break even.
When we talk about gold, it is important to differentiate between paper gold and physical gold. Paper gold refers to Exchange Traded Funds (ETFs), gold shares or options and futures. These products are better suited for speculators or traders seeking fast returns. There are risks involved for paper gold, such as counterpart risk. Physical gold refers to bullion –

Shape your child’s financial destiny

life insurance
As a wealth builder, I considered it my duty to help shaping my child’s financial destiny. A few days ago, I bought an endowment plan after much financial planning with my wife. The policy was purchased under my name but eventually when it matures twenty years down the road, we plan to use the money for our daughter’s university fees.
We thought that since I am the sole breadwinner, the policy should insure me, so that in case if anything happened to me, the policy can still sustain and provides for my daughter’s education fees.
Beyond this saving plan, I hope that my daughter will grow up cultivating a good saving habit and develop prudent personal finance skills. This is important, especially so in an expensive city like Singapore. To this end, my wife and myself think that parents have a critical role in shaping their child’s financial destiny.
Insurance

Lead by example
Contrary to what many parents thought, toddlers by as early as 14 months, are masters at reading social cues. This means that children often observe and take the cues from parents’ life habits. If your financial situation is consistently in a bad shape, you are not going to convince your child when you try to educate him/her on financial prudence. Always remember to walk the talk and lead by example. If you want to inculcate good saving habit in your child, make sure that you practiced it as well. Reduce your debts and closely monitor your expenses. You will be surprised that over time, you child will pick up these good habits even if you didn’t tell him/her.

Right values
Occasionally, point out to your child the difference between needs and wants. If your child can appreciate the difference, he/she will be able to appreciate the value of

SingTel grilled over digital investments

AEM share price

I read an article in The Strait Times which stated that SingTel was grilled by investors over its digital investments during its latest annual general meeting AGM. Apparently, some of the investors were concerned about the company’s decision to budget multi-billion dollar for its new digital investments and queried the company on the soundness of such an ambitious plan. I am not vested in any SingTel shares and neither did I attend any of its AGM, but after reading the article, I have some comments.

Most investors thought that buying the shares of a company means having a stake in the entity, albeit as minor shareholders. They are absolutely right. But technically, in most cases, they do not have much say or influence over key decisions made by the management of the company.

Stock investing

Take for example, in SingTel’s case, even though many minor shareholders were unhappy over the company’s strategy to invest billion of dollars in digital portals, the resolution was still passed. So honestly, I would say the AGM was really just a formality to inform the outcome of management’s decision.

My thinking is that if you are uncomfortable with the direction undertook by the company which you invested in, you should just divest away your stake. Why bother to question the management at AGM and waste the time of the others?

For SingTel’s case, the company needs to create new revenue sources through investments in digital projects such as HungryGoWhere, Amobee and Adjitsu. With only 5 million population and two other telcos, Singapore’s market is too small and competitive for SingTel to have sustainable growth. If these minor shareholders thought that SingTel can maintain yearly business growth through sale of mobile phones and mobile plan subscriptions, then they need to realize that such an approach is simply not

BullionStar Review: Gold Buying Frenzy in Asia

This article is extracted from BullionStar, a Singapore online bullion company where you can buy gold and silver at competitive prices.
According to Scott Morrison, Chairman of Swiss precious metals processor, Metalor Technologies, gold refineries were unable to keep up with the demand from Asia investors as the plunge in gold price sparked frenzy in buying gold bullions and jewelry from China to India. His company expects to complete its US$15 million gold refinery on Singapore by the end of this year. The refinery will have a capacity of 150 metric tons a year, he said.

In a bid to expand Singapore’s share of gold bullion trading, the government removed 7 percent GST from investment-grade precious metals in 2012. The aim is to enhance trading and encourage the buying and selling of gold and silver. Retail players should welcome this move as having an vibrant ecosystem of trading facilities will help to boost the liquidity of precious metals.

As a result of this policy change, international financial institutes like Deutsche Bank and JPMorgan Chase have opened vaults in Singapore. In recent years, in order to meet the demand for physical gold which is being highly sought by the local investment community, premiere online bullion dealers like BullionStar Singapore were established to facilitate the trading of gold and silver at competitive prices.

Invest in Singapore Industrial Sector Stocks

SingPost share price

Below is an article from guest blogger, Richard who works as a stock analyst and has 3 years of experience in the stock market. He likes to write articles and hope to share his experiences with investors in Singapore If you would like additional SGX Dividend Stocks data, information or screening tools, please visit website http://sg.dividendinvestor.com, a leading source for in-depth research and analysis for stock investments.

While talking about the Singapore stocks outlook, we should examine the general global economic outlook. As being a small country the Singapore stock market is much shaped by what is going on in the global markets. By investing in Singapore Stocks, investors can generate income for their future. I am sharing five Singapore stocks from Industrial sector in which you should invest.

MYP Ltd (SGX: F86)

MYP Ltd is a Singapore-based company. It is engaged in investment holding and providing of shipping agency, terminal operations, warehousing and logistics services. Its operating segments include Agency and terminal operations and Strategic projects/Logistics. In June 2012, Ow Chio Kiat sold its 25.69% interest in the Company. In April 2013, it completed the divestment if SSC Shipping Agencies Pte Ltd, Island Line Pte, Nanyand Maritime (s’pore) Pte Ltd and Hai Poh Terminals Pte Ltd.
It has a market capitalization of 28.38 Million, EPS is 0.03, P/E ratio is 7.31 and the dividend yield is 10.00% at the annual dividend payout of 0.00.
Freight Link Express Holdings Limited (SGX: F01)
It is involved in freight forwarding, chemical logistics, warehousing and logistics, leasing of industrial buildings, heavy vehicles parking lot operator, exhibition and event project management, investment holding and property management services. The company has five operating segments: Freight forwarding, Warehousing and logistics, Chemical storage and logistics, Management fees business and other operations. In November 2012, the company

How to make money from blogging

In my previous post, I wrote about making money from blogging. As promised, in this post, I shall elaborate how you can make decent money from your blog. Bear in mind that this article is written solely based on my personal experience. It may not be the only way of making money from blogging. After all, I am not a full time professional blogger and my main source of income is not derived from blogging. So if there are better alternative ways, feel free to share.

sg wealth builder logo

Passion
There are many people who think that they can make a living from blogging full time. In reality, this is very difficult to achieve. Indeed, you probaby can make a few hundreds or thousands here and there from affiliate marketing or sponsorships. But in most months, there might be neligible or even no income at all. Over the years, I have seen so many local bloggers fizzled out from the scene after only a few months. I supposed most of them gave up blogging after realizing that it really cannot bring food to the table on a daily basis. So if you wanted to make a career in blogging, your first priority should not be in making money from your blog. Rather, you must first have the passion for sharing a niche in your blog. The money will come in after you have build up a high traffic blog with established reputation.

Content
The only way to build up a following is to have a content driven blog. There is a need to update your blog frequently with content rich original material. This may requires a lot of time and energy, especially if you are writing articles on very specialized topic. For me, I am often guilty of not being able

Making money from blogging

CPF monies

July 2013 has been a fantastic month for me so far. Both my career and blog reached new milestones during this month. Firstly, I have been promoted. This is the first promotion in my job journey and I am so happy that my hard work for the previous years had paid off.

Thinking back, those extra duties and late nights at office were worth the efforts. With the promotion increments, my financial situation definitely improved a lot, given that I am the sole breadwinner. The next step for me is to continue reducing my housing and car loans.

Secondly, I am pleased to inform my readers that one of my articles was featured in Yahoo Finance! on 3rd July. It was a pleasant surprise because I was not informed prior to the article being published and I happened to chance upon it. Furthermore, this article was written quite sometime ago last year. So I didn’t really expect it to be featured by any online media companies. Nonetheless, it was a form of recognition and made me feel encouraged to keep blogging. Hopefully more of my articles would be featured by Yahoo Finance!

Wealth

Lastly, I made $1000 from my blog, SG Wealth Builder, last month. Over the years, I had several assignments from vendors who got to know me through my blog. In the past, these assignments paid me very little money but the offer for my latest assignment was quite attractive, even though I must say it took up a lot of my time and energy.

I accepted the offer because I see it as a challenge for me to apply my writing skill. The process has been rewarding because in addition to earning some pocket money, I also learned something new through the extensive reading and research.
I

OCBC Bank: Top Investment Ideas (July 2013)

The following coverage is from OCBC Bank Investment Seminar conducted on 9 July 2013.

Continue Drip-Feeding into Equities
We remain positive on global equities, especially with the recent correction in prices. Going forward, markets will remain volatile with uncertainties about Fed monetary policy and China. However, we see this as an opportunity to buy, and continue to recommend that investors drip-feed capital into the markets.

The US and Japan are still our preferred regions: an allocation to US equities is an important element of your core portfolio. Meanwhile, as expected, investment-grade bonds have borne the brunt of the rise in long-term interest rate; we prefer high-yield bonds.

Recommendations
Equity funds: With U.S. economic data pointing to increasingly solid growth and the outlook for corporate earnings steadily improving, investors can gain exposure to the country’s recovery through the Franklin U.S. Opportunities Fund. The fund invests in leading growth companies with a sustainable competitive advantage.

Investors who prefer a geographically diversified fund that captures both yield and growth could consider Blackrock’s BGF Global Equity Income Fund, with monthly pay-out amounts of around 3 per cent per annum. The fund provides exposure to developed markets such as the U.S., investing in quality companies with strong growth potential that deliver a steady dividend stream.

Equity-Linked Convertibles Investments: We recommend cyclical sectors to investors looking to move into equities. With its large deposit base, DBS should benefit from a rising interest rate environment; a good ELCI entry level may be when spot prices reach S$15.25.

In the U.S., the IT sector looks set to benefit from an expected increase in infrastructure spending. Clients may consider Qualcomm, which is well placed over the coming year to benefit from the introduction of faster 4G mobile networks.

Bonds: Shorter-dated bonds can reduce interest rate risk in the

Investing in Singapore Stocks

SembCorp Marine

Below is an article from guest blogger, Richard who works as a stock analyst and has 3 years of experience in the stock market. He likes to write articles and hope to share his experiences with investors on Singapore stocks. If you would like additional Singapore stocks data, information or screening tools, please visit website http://sg.dividendinvestor.com, a leading source for in-depth research and analysis for stock investments. 

Singapore is the fourth largest foreign exchange trading center which is also rated as the most business-friendly economy in the world. The country had an estimated growth rate of 8.2% for the second quarter of 2007. The country has many financial advantages. It has also a strong currency. Focus on these Singapore stocks to add your portfolio.

Stock investing

SembCorp Marine Ltd. (SGX: S51)

SembCorp Marine Ltd is a marine and offshore engineering company. It is engaged in the provision of management services and an investment holding. The company provides ship repair, shipbuilding, rig building and offshore engineering and construction. It operates in two segments: Ship and rig repair, building and conversion, and ship chartering. 
The company has a market capitalization of 9.03 Billion, EPS is 0.26, P/E ratio is 16.58 and the dividend yield is 2.55% at the annual dividend payout of 0.06 
Rickmers Maritime (SGX: B1ZU)
Rickmers Maritime is a Singapore-based company. Its principal activities are owning and operating containerships under long-term, fixed-rate time charters to container liner shipping companies through wholly owned subsidiaries. As of December 31, 2011, the trust had 16 containerships. These containerships offered range in size from 3, 450 twenty-foot equivalent units o 5,060 twenty-foot equivalent units, offering a total capacity of 66, 410 twenty-foot equivalent units. 
The company has a market capitalization of 228.78 Million, EPS is 0.05, P/E ratio is 4.98 and the dividend yield is

July’s Stock Markets Outlook

Guest blogger Argutori is an avid blogger who manage a private portfolio. His fund pursues a fundamental value oriented strategy focusing on developing and frontier markets in the Asian region. The fund focuses on countries that have progressive foreign investment policies, young and growing populations, and stable or improving economic situations. The aim is to find and invest in companies that have stable franchises for good prices before the masses.
While my blog is largely focused on Southeast Asian stock markets, I also try to keep things in perspective and consider the global situation. Stock markets have had a relatively good run so far this year and there is a lot weighing on the US recovery, which has spilled over to emerging markets. I’m struggling to piece together the economic data, media commentary and market movements, which appear to me to be disjointed. Which lead me to ask “What’s really going to happen with equity markets for the rest of this year and how can I best position my portfolio?”

 

It feels like the world’s gone crazy and the markets aren’t acting in line with rational expectations – worse than anticipated economic data sends the markets up because it means that the Fed will have to keep pumping dollar bills into the system.  44% of 54 economists that Bloomberg surveyed expected the Fed to start trimming back on the amount of bond buying later this year. This could happen but I have a different opinion on why Bernanke made the comments about tapering.
There’s mixed evidence about the improvement in the US
There are a number of charts and economic analysis which paint a dreary picture of the US economy at odds with the perspectives that would lead Bernanke to suggest a reduction in tapering is necessary because of

BullionStar Review: Will the end of quantitative easing signal the collapse of gold prices?

This article is extracted from BullionStar, a Singapore online bullion company where you can buy gold and silver at competitive prices.

It has been an interesting year thus far for gold. Having traded between USD$ 1600 to USD$ 1800 for much of last year, it has trended downwards for the first few months of this year, cumulating in a nose dive in the middle of April, where prices tumbled 15% in a mere 2 days and is currently trading around USD$1,400.

One of the main contributing reasons many agree on is the ongoing talk by the United States Federal Reserve to taper quantitative easing, with some suggesting a tapering starting as early as the end of this year. The reason offered was that the amount of money that has been pumped into the economy has already started to stimulate the economy and since this is the case, the government do not have to interfere in the markets anymore. Other reasons that were offered included the slowdown in the Chinese Economy or the hedge funds liquidating their long positions in the stock markets.

What implications are there should the Federal Reserve slow down the printing of the dollar? The dollar will definitely increase against other currencies, which is what we have already seen as investors move their money out of other asset classes (gold and silver included) to invest in the US dollar and their stock exchanges. For example, the S&P 500 has been up around 16% since the start of the year.
This outflow of money from gold and silver into US dollar and its stock exchanges is likely to cause prices of gold and silver to fall. Does that mean that we should steer clear of physical precious metals? Investors might have forgotten two very key issues. Firstly, even

New measures on property loan

investment linked policy

Over the weekend, the government rolled out new measures on property loan to curb excessive borrowings by property investors. The new ruling requires lenders to take into consideration of the debtor’s other existing loans when granting property loans.

The aim is to strengthen credit practices by financial institutions and encourage financial prudence among borrowers. The central bank will also refine rules related to the application of the existing Loan-to-Value (LTV) limits on housing loans. These refinements seek to ensure the effectiveness of the LTV limits that were put in place to cool investment demand in the housing market. In particular, they aim to prevent circumvention of the tighter LTV limits on second and subsequent housing loans.

The question at the back of investors’ mind will be whether the new measure will be the ultimate needle to burst the housing bubble. My take is that this new measure will not have any significant effect on the housing market.

Property investment

To put things into perspective, the current housing situation is not truly due to demand and supply dynamics. The private home market has witnessed huge gains in prices in recent years because of the hot money flowing from foreign countries such as United States and China as a result of loose monetary expansion. Cash rich investors poured in funds to pump up prices of local private homes. Therefore no matter what policies that are going to be or have been implemented by government, they will have limited effectiveness to cool the market because the rich will not be hurt. Only the middle-income buyers will be curbed by the slew of measures.

The meltdown in our housing bubble will only occur when there is an increase in mortgage interest rate, and I see it looming soon. Very often, our local banks take the cue

OCBC Blue Chip Investment Plan

On Tuesday, OCBC Bank partners with SGX to launch the OCBC Blue Chip Investment Plan (BCIP). Under this plan, investors can opt to use cash, CPF or their SRS accounts to invest a fixed amount on a monthly basis. For as little as $100 a month, retail investors can get to invest in local blue chips.

You do not need to go through the hassle and open any securities trading account or Central Depository (Pte) Ltd securities account for your shares under this plan. All you need is an OCBC deposit account, OCBC CPF Investment Account or OCBC SRS account.

My view on this scheme is that OCBC has identified a gap in the market and that this scheme is actually meant to address this gap. According to SGX, retail investors account for only 89 per cent of the daily turnover for stocks with a market capitalisation of under S$200 million. But retail investors make up only a quarter of the daily turnover for blue chips, with the rest of the trading controlled by institutional investors. So clearly, most retail players’ participation rate has been low because blue chips’ entry price is relatively high compared to other counters. OCBC hopes that the new plan gives investors an option to buy smaller number of shares with their chosen monthly investment amount. But the question that most investors should ask themselves is: what are the pros and cons on joining this scheme? Beyond the marketing hype, is it important to think through these questions before committing yourself to such financial products.

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I will first touch on the pros. If you are the type of person who wish to invest some of your spare savings but yet don’t like the hassle of learning and building up your investment experiences, this type of scheme