As a wealth builder, I have deep respect for Gerald Tay because he was born to a rich family but subsequently had to start from square one because of some unforeseen family financial difficulties. As a result, his perspective is unique as he knows what it is like to be rich and poor. Below is an eerily accurate predictions made by Gerald in 2013 from my interview with him:
1) The world economy might be headed for a major financial crisis, making the 2008 financial crisis look like a chicken in a coup. Major economies (China, USA, Europe, Japan) are supported by a large quantity of ‘phony’ money printed endlessly by their governments. Instead of turning the economy around, massive debts are sending these nations towards default, and there’s no escape from a market crash in the future when you have such enormous debts.
SG Wealth Builder
2) Even if there’s no such catastrophic event mentioned above to happen anytime in the next 5 years, there might be some ‘black swan’ event that might just tip the balance and burst the asset bubble, especially in Asia. The ramifications could be severe enough for our Singapore property market, especially when prices are already at ‘bubble-pricked’ levels.
3) There’s a high possibility of interest rates going up, once markets realised that the bonds which they hold might never be redeemed by broke governments. Although higher interest rates have never been the sole catalyst for property prices to fall, they do have some impact nevertheless.
4) For the next couple of years, as long as governments and central banks can continue to convince markets of their ability to restore economic growth and certainty through their ‘asset enhancement’ program (money printing), investors (large institutions) will continue to push more money into the system, especially into Asia and asset prices like property may continue to rise or stabilise with more cooling measures ahead.
5) By 2016 in Singapore, there will be a huge supply of at least 200,000 new residential units coming into the market, both from HDB and private. You have to ask if there will be enough money supply in the market by then to absorb especially for those who hope to sell for capital appreciation. In the commercial sector, rental is one of the most expensive cost components and should there be a financial crisis (high possibility), which businesses can afford to pay high rentals then?
Gerald Tay hates to predict future market trend and instead prefers to be pragmatic in his investment approach. I like his saying “opportunity is when knowledge meets preparation” because I believe in acquiring the right knowledge for investing as well. If you want to be rich, don’t just follow what the gurus said. You must be your own man and learn the rope on how to invest.
To this end, SG Wealth Builder is pleased to join force with Dave, a fellow investment blogger who started Smart Passive Cash Flowwebsite in 2011 and subsequently created the membership website, See How I Trade. Watch how the guru strategize and learn from him on how to trade. This blogger has a passion in trading and like me, understood the importance of respecting the big boys’ movement. Some features of his membership website:
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The unique portion of his site is that he combines Technical Analysis (on charts) and the movement of the Big Boys (as seen in the derivatives market) to form powerful trades. I was inspired by Dave and realize the importance of learning and earning. So I encourage readers to subscribe to his membership site as VIP Trader. Remember to quote the discount code: “sgwealthbuilder” to enjoy discounted subscription of USD49 per month.
Join me in my investment journey and read my financial adventures for free! Through the sharing, my vision is to improve and change people’s lives. In school, we don’t learn how to budget, manage our finances, build wealth and invest our money. Instead, we are taught useless subjects which we would never put to use most of the times during our working lives.
Yet, managing our money is an important life skill that is critical to our survival in the society. Many people start to realize how it is importance of managing money only when they face the prospect of financial ruins, by then which would be too late for remedies. Thus, I started this blog to share articles on finances which I aspire to make a positive impact in others’ lives.
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