The past 3 weeks have been a very turbulence time for stocks. What should you do then?
Well, I am not sure what you will do, but I for sure am looking for investment opportunities, despite my portfolio being hit.
As Benjamin Graham says:
"The stock owner should not be too concerned with erratic fluctuations in stock prices, since in the short term, the stock market behaves like a voting machine, but in the long term it acts like a weighing machine" (i.e. its true value will in the long run be reflected in its stock price).
It does look like the drop in stock market as a whole has stabilized (as long as Ebola will not spread out of control).
Saturday, October 25, 2014
Monday, October 13, 2014
What are the scams that we know so far?
Ok, I am writing this from memory, so pardon the inaccuracy but it should be roughly there...
The scams that happened so far that I can remember includes get rich quick investment schemes promising super high returns in:
- land-banking (in foreign countries of course!)
- gold
- ostrich farms
- olive farms
- membership MLMs
- exploration (gold, mining, oil exploration etc)
- foreign properties (newly launched properties to be constructed - of course!)
- secret trading strategy worth MILLIONS $
- You won 1st / strike lottery / selected to receive MILLIONS $, need your cooperation to transfer these money to your account... - The catch: Need you to transfer some facilitation fee to facilitate the transfer!
- (what else???)
The scams that happened so far that I can remember includes get rich quick investment schemes promising super high returns in:
- land-banking (in foreign countries of course!)
- gold
- ostrich farms
- olive farms
- membership MLMs
- exploration (gold, mining, oil exploration etc)
- foreign properties (newly launched properties to be constructed - of course!)
- secret trading strategy worth MILLIONS $
- You won 1st / strike lottery / selected to receive MILLIONS $, need your cooperation to transfer these money to your account... - The catch: Need you to transfer some facilitation fee to facilitate the transfer!
- (what else???)
Thursday, October 9, 2014
New survey gives snapshot of typical retiree households
An interesting article I read recently on "New survey gives snapshot of typical retiree households" which you read at this URL...
shed interesting new facts and information retiree households in Singapore.
To summarize, some interesting facts are:
* A typical retired household here draws a monthly income of $1,735, half of which comes from investments and contributions from family members or friends.
* A retiree household living in a three-room flat spends an average of $1,000 every month, of which a third goes to food and another third to housing, utilities and health expenses.
* Retiree households are also spending more every month. They shelled out an average of $1,700 last year, compared to $1,300 five years ago. However, the bottom fifth of these households spent only $480 a month, compared to $4,120 for the top 20 per cent.
shed interesting new facts and information retiree households in Singapore.
To summarize, some interesting facts are:
* A typical retired household here draws a monthly income of $1,735, half of which comes from investments and contributions from family members or friends.
* A retiree household living in a three-room flat spends an average of $1,000 every month, of which a third goes to food and another third to housing, utilities and health expenses.
* Retiree households are also spending more every month. They shelled out an average of $1,700 last year, compared to $1,300 five years ago. However, the bottom fifth of these households spent only $480 a month, compared to $4,120 for the top 20 per cent.
Monday, October 6, 2014
Flood of junk bond issues worries investors
I am surprised to read the below news in Business Times, while at the same time getting news from my Relationship Manager that the bonds, perpetual bonds, and debt notes issued by Singapore companies are getting snapped up within a day of issue and always at the low end of the guided coupon rate.......... Are the Singaporean investors not savy enough? Caveat Emptor!
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PUBLISHED OCTOBER 06, 2014
Flood of junk bond issues worries investors
Emerging market supplies set to hit a record as corporates from China and Asian countries tap low interest rates
BYNEIL BEHRMANN
GLOBAL investors are beginning to become wary of low yielding emerging and European lower grade corporate "junk" bonds following a flood of new supplies on the market.
The result has been a decline in prices and a rise in average yields since the market peaked in the second quarter of this year, traders and analysts say.
In the first three quarters of 2014, US$397 billion of emerging market bonds were issued, according to data from BondRadar, which monitors the primary new issue international bond market.
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PUBLISHED OCTOBER 06, 2014
Flood of junk bond issues worries investors
Emerging market supplies set to hit a record as corporates from China and Asian countries tap low interest rates
BYNEIL BEHRMANN
GLOBAL investors are beginning to become wary of low yielding emerging and European lower grade corporate "junk" bonds following a flood of new supplies on the market.
The result has been a decline in prices and a rise in average yields since the market peaked in the second quarter of this year, traders and analysts say.
In the first three quarters of 2014, US$397 billion of emerging market bonds were issued, according to data from BondRadar, which monitors the primary new issue international bond market.
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Friday, October 3, 2014
Trend of US$ moving up against S$ has been established
Another reminder that US$ is moving up against S$ and the trend seems to have been established and it is not too late to catch the bandwagon if you want to........................
Think this trend should continue for next few years - Of course, it would not be in a straight line, but you can bet that US$ will be higher than S$ 1 year later, and that it will still be higher 2 years later vs 1 year later..............................
As of now, US$1 is S$1.272...........
On 16 Sep 2014 when I mentioned about the trend of US$ moving up against S$, US$1 was S$1.260.
Think this trend should continue for next few years - Of course, it would not be in a straight line, but you can bet that US$ will be higher than S$ 1 year later, and that it will still be higher 2 years later vs 1 year later..............................
As of now, US$1 is S$1.272...........
On 16 Sep 2014 when I mentioned about the trend of US$ moving up against S$, US$1 was S$1.260.
How much will it cost to raise your child?
You can read an article that I refer to below for how much it will cost to raise your child........
You can find interesting cost of raising child calculator at this URL...
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Average cost of raising a child hits $245,000
By Melanie Hicken @melhicken August 18, 2014: 3:32 PM ET
Kids are cute...but expensive
NEW YORK (CNNMoney)
New parents be warned: It could cost nearly a quarter of a million dollars to raise your child -- and that's not even including the cost of college.
To raise a child born in 2013 to the age of 18, it will cost a middle-income couple just over $245,000, according to newly released estimates from the U.S. Department of Agriculture. That's up $4,260, or almost 2%, from the year before.
Estimates can vary widely depending on where you live and how much you earn.
High-income families who live in the urban Northeast, for example, are projected to spend nearly $455,000 to raise their child to the age of 18, while low-income rural families will spend much less, an estimated $145,500, according to the report.
The figures are based on the cost of housing, food, transportation, clothing, health care, education, child care and miscellaneous expenses, like haircuts and cell phones. But the estimates don't include the cost of college -- a big-ticket expense that keeps rising.
The good news: overall costs have grown more slowly in recent years thanks to low inflation, said economist Mark Lino, who has written the annual report for the USDA since 1987.
But many families are still having to do more with less. The country's median income remains more than 8% below where it was before the recession, while child care and health care costs continue to grow faster than inflation.
Child care, in particular, is a huge burden -- often costing as much as the family home.
In 2012, center-based care for one infant was greater than median rent payments in nearly half of the states, according to Child Care Aware of America's most recent report.
In Seattle, Britta Gidican and her boyfriend spend $1,380 each month on daycare for their 17-month-old son, just $20 less than they spend on their mortgage each month.
"When I was pregnant I knew daycare would be expensive," said Gidican, a public relations manager. "But I didn't expect to pay two mortgages."
Rising transportation and food costs are also eating up a big chunk of family budgets. Gas prices have nearly doubled since 2004, according to the AAA. Meanwhile, food prices have increased more than 13% since 2008, according to the USDA, and make up the third biggest child-rearing expense in the agency's estimate.
Kim Blackham, a mother of four and part-time marriage and family therapist, says she has seen her grocery bill climb dramatically in the past decade. Today, she and her husband spend around $1,000 each month, in part because of her son's food allergies and her efforts to cook healthier meals for her family.
"I used to coupon shop, but the problem with coupons is that they are all for processed items," she said. "You seldom see a coupon for fresh fruit or meat."
For families trying to get by, here are some ways to ease the sting:
Use your community: From fancy strollers to bike seats, Boulder, Colo. mother-of-two Kate Lacroix said she has found a large community of people willing to share their hand-me-downs.
"There is a real economy of scale when you use the village," she said.
Take advantage of tax credits: Many employers offer tax-advantaged accounts that let parents pay for health and child care expenses with before-tax dollars.
Taking advantage of these accounts, and other child-related tax credits, can help you save thousands of dollars come tax time, said Bob Gavlak, a wealth advisor with Strategic Wealth Partners in Independence, Ohio.
Plan (and save) ahead: When possible, expectant parents should prepare for the added costs ahead of time, said Matt Becker, a financial planner who specializes in working with new parents.
First, estimate your child-related expenses and then try to save that amount each month. By the time your child is born, you'll be used to living without that money and also have a sizable savings built up.
"Having a baby is a huge life change. You are going to have unexpected things come up," said Becker, founder of planning firm Mom and Dad Money. "Having that extra savings can help a lot."
------------------------------------
More on costs of raising child at this URL...
You can find interesting cost of raising child calculator at this URL...
------------------------------------
Average cost of raising a child hits $245,000
By Melanie Hicken @melhicken August 18, 2014: 3:32 PM ET
Kids are cute...but expensive
NEW YORK (CNNMoney)
New parents be warned: It could cost nearly a quarter of a million dollars to raise your child -- and that's not even including the cost of college.
To raise a child born in 2013 to the age of 18, it will cost a middle-income couple just over $245,000, according to newly released estimates from the U.S. Department of Agriculture. That's up $4,260, or almost 2%, from the year before.
Estimates can vary widely depending on where you live and how much you earn.
High-income families who live in the urban Northeast, for example, are projected to spend nearly $455,000 to raise their child to the age of 18, while low-income rural families will spend much less, an estimated $145,500, according to the report.
The figures are based on the cost of housing, food, transportation, clothing, health care, education, child care and miscellaneous expenses, like haircuts and cell phones. But the estimates don't include the cost of college -- a big-ticket expense that keeps rising.
The good news: overall costs have grown more slowly in recent years thanks to low inflation, said economist Mark Lino, who has written the annual report for the USDA since 1987.
But many families are still having to do more with less. The country's median income remains more than 8% below where it was before the recession, while child care and health care costs continue to grow faster than inflation.
Child care, in particular, is a huge burden -- often costing as much as the family home.
In 2012, center-based care for one infant was greater than median rent payments in nearly half of the states, according to Child Care Aware of America's most recent report.
In Seattle, Britta Gidican and her boyfriend spend $1,380 each month on daycare for their 17-month-old son, just $20 less than they spend on their mortgage each month.
"When I was pregnant I knew daycare would be expensive," said Gidican, a public relations manager. "But I didn't expect to pay two mortgages."
Rising transportation and food costs are also eating up a big chunk of family budgets. Gas prices have nearly doubled since 2004, according to the AAA. Meanwhile, food prices have increased more than 13% since 2008, according to the USDA, and make up the third biggest child-rearing expense in the agency's estimate.
Kim Blackham, a mother of four and part-time marriage and family therapist, says she has seen her grocery bill climb dramatically in the past decade. Today, she and her husband spend around $1,000 each month, in part because of her son's food allergies and her efforts to cook healthier meals for her family.
"I used to coupon shop, but the problem with coupons is that they are all for processed items," she said. "You seldom see a coupon for fresh fruit or meat."
For families trying to get by, here are some ways to ease the sting:
Use your community: From fancy strollers to bike seats, Boulder, Colo. mother-of-two Kate Lacroix said she has found a large community of people willing to share their hand-me-downs.
"There is a real economy of scale when you use the village," she said.
Take advantage of tax credits: Many employers offer tax-advantaged accounts that let parents pay for health and child care expenses with before-tax dollars.
Taking advantage of these accounts, and other child-related tax credits, can help you save thousands of dollars come tax time, said Bob Gavlak, a wealth advisor with Strategic Wealth Partners in Independence, Ohio.
Plan (and save) ahead: When possible, expectant parents should prepare for the added costs ahead of time, said Matt Becker, a financial planner who specializes in working with new parents.
First, estimate your child-related expenses and then try to save that amount each month. By the time your child is born, you'll be used to living without that money and also have a sizable savings built up.
"Having a baby is a huge life change. You are going to have unexpected things come up," said Becker, founder of planning firm Mom and Dad Money. "Having that extra savings can help a lot."
------------------------------------
More on costs of raising child at this URL...
Thursday, October 2, 2014
The coming era of unlimited — and free — clean energy
Below is an interesting and thought-provocative read. So, how can we benefit from this knowledge? Which are the companies which are in solar-related businesses that will benefit most from the solar energy trend?
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By Vivek Wadhwa September 19, 2014
Solar energy is ready for primetime. (Nicky Loh/Bloomberg)
In the 1980s, leading consultants were skeptical about cellular phones. McKinsey & Company noted that the handsets were heavy, batteries didn’t last long, coverage was patchy, and the cost per minute was exorbitant. It predicted that in 20 years the total market size would be about 900,000 units, and advised AT&T to pull out. McKinsey was wrong, of course. There were more than 100 million cellular phones in use 2000; there are billions now. Costs have fallen so far that even the poor — all over world — can afford a cellular phone.
The experts are saying the same about solar energy now. They note that after decades of development, solar power hardly supplies 1 percent of the world’s energy needs. They say that solar is inefficient, too expensive to install, and unreliable, and will fail without government subsidies. They too are wrong. Solar will be as ubiquitous as cellular phones are.
Futurist Ray Kurzweil notes that solar power has been doubling every two years for the past 30 years — as costs have been dropping. He says solar energy is only six doublings — or less than 14 years — away from meeting 100 percent of today’s energy needs. Energy usage will keep increasing, so this is a moving target. But, by Kurzweil’s estimates, inexpensive renewable sources will provide more energy than the world needs in less than 20 years. Even then, we will be using only one part in 10,000 of the sunlight that falls on the Earth.
In places such as Germany, Spain, Portugal, Australia, and the Southwest United States, residential-scale solar production has already reached “grid parity” with average residential electricity prices. In other words, it costs no more in the long term to install solar panels than to buy electricity from utility companies. The prices of solar panels have fallen 75 percent in the past five years alone and will fall much further as the technologies to create them improve and scale of production increases. By 2020, solar energy will be price-competitive with energy generated from fossil fuels on an unsubsidized basis in most parts of the world. Within the next decade, it will cost a fraction of what fossil fuel-based alternatives do.
It isn’t just solar production that is advancing at a rapid rate; there are also technologies to harness the power of wind, biomass, thermal, tidal, and waste-breakdown energy, and research projects all over the world are working on improving their efficiency and effectiveness. Wind power, for example, has also come down sharply in price and is now competitive with the cost of new coal-burning power plants in the United States. It will, without doubt, give solar energy a run for its money. There will be breakthroughs in many different technologies, and these will accelerate overall progress.
Despite the skepticism of experts and criticism by naysayers, there is little doubt that we are heading into an era of unlimited and almost free clean energy. This has profound implications.
First, there will be disruption of the entire fossil-fuel industry, starting with utility companies — which will face declining demand and then bankruptcy. Several of them see the writing on the wall. The smart ones are embracing solar and wind power. Others are lobbying to stop the progress of solar power — at all costs. Witness how groups in Oklahoma persuaded lawmakers to approve a surcharge on solar installations; the limited victory that groups backed by the Koch brothers won in Arizona to impose a $5 per month surcharge; and the battles being waged in other states. They are fighting a losing battle, however, because the advances aren’t confined to the United States. Countries such as Germany, China, and Japan are leading the charge in the adoption of clean energies. Solar installations still depend on other power sources to supply energy when the sun isn’t shining, but battery-storage technologies will improve so much over the next two decades that homes won’t be dependent on the utility companies. We will go from debating incentives for installing clean energies to debating subsidies for utility companies to keep their operations going.
The environment will surely benefit from the elimination of fossil fuels, which will also boost most sectors of the economy. Electric cars will become cheaper to operate than fossil-fuel-burning ones, for example. We will be able to create unlimited clean water — by boiling ocean water and condensing it. With inexpensive energy, our farmers can also grow hydroponic fruits and vegetables in vertical farms located near consumers. Imagine skyscrapers located in cities that grow food in glass buildings without the need for pesticides, and that recycle nutrients and materials to ensure there is no ecological impact. We will have the energy needed to 3D-print our everyday goods and to heat our homes.
We are surely heading into the era of abundance that Peter Diamandis has written about — the era when the basic needs of humanity are met through advancing technologies. The challenge for mankind will be to share this abundance, ensuring that these technologies make the world a better place.
Vivek Wadhwa is a fellow at Rock Center for Corporate Governance at Stanford University, director of research at Center for Entrepreneurship and Research Commercialization at Duke, and distinguished fellow at Singularity University. His past appointments include Harvard Law School, University of California Berkeley, and Emory University.
----------------------------
----------------------------
By Vivek Wadhwa September 19, 2014
Solar energy is ready for primetime. (Nicky Loh/Bloomberg)
In the 1980s, leading consultants were skeptical about cellular phones. McKinsey & Company noted that the handsets were heavy, batteries didn’t last long, coverage was patchy, and the cost per minute was exorbitant. It predicted that in 20 years the total market size would be about 900,000 units, and advised AT&T to pull out. McKinsey was wrong, of course. There were more than 100 million cellular phones in use 2000; there are billions now. Costs have fallen so far that even the poor — all over world — can afford a cellular phone.
The experts are saying the same about solar energy now. They note that after decades of development, solar power hardly supplies 1 percent of the world’s energy needs. They say that solar is inefficient, too expensive to install, and unreliable, and will fail without government subsidies. They too are wrong. Solar will be as ubiquitous as cellular phones are.
Futurist Ray Kurzweil notes that solar power has been doubling every two years for the past 30 years — as costs have been dropping. He says solar energy is only six doublings — or less than 14 years — away from meeting 100 percent of today’s energy needs. Energy usage will keep increasing, so this is a moving target. But, by Kurzweil’s estimates, inexpensive renewable sources will provide more energy than the world needs in less than 20 years. Even then, we will be using only one part in 10,000 of the sunlight that falls on the Earth.
In places such as Germany, Spain, Portugal, Australia, and the Southwest United States, residential-scale solar production has already reached “grid parity” with average residential electricity prices. In other words, it costs no more in the long term to install solar panels than to buy electricity from utility companies. The prices of solar panels have fallen 75 percent in the past five years alone and will fall much further as the technologies to create them improve and scale of production increases. By 2020, solar energy will be price-competitive with energy generated from fossil fuels on an unsubsidized basis in most parts of the world. Within the next decade, it will cost a fraction of what fossil fuel-based alternatives do.
It isn’t just solar production that is advancing at a rapid rate; there are also technologies to harness the power of wind, biomass, thermal, tidal, and waste-breakdown energy, and research projects all over the world are working on improving their efficiency and effectiveness. Wind power, for example, has also come down sharply in price and is now competitive with the cost of new coal-burning power plants in the United States. It will, without doubt, give solar energy a run for its money. There will be breakthroughs in many different technologies, and these will accelerate overall progress.
Despite the skepticism of experts and criticism by naysayers, there is little doubt that we are heading into an era of unlimited and almost free clean energy. This has profound implications.
First, there will be disruption of the entire fossil-fuel industry, starting with utility companies — which will face declining demand and then bankruptcy. Several of them see the writing on the wall. The smart ones are embracing solar and wind power. Others are lobbying to stop the progress of solar power — at all costs. Witness how groups in Oklahoma persuaded lawmakers to approve a surcharge on solar installations; the limited victory that groups backed by the Koch brothers won in Arizona to impose a $5 per month surcharge; and the battles being waged in other states. They are fighting a losing battle, however, because the advances aren’t confined to the United States. Countries such as Germany, China, and Japan are leading the charge in the adoption of clean energies. Solar installations still depend on other power sources to supply energy when the sun isn’t shining, but battery-storage technologies will improve so much over the next two decades that homes won’t be dependent on the utility companies. We will go from debating incentives for installing clean energies to debating subsidies for utility companies to keep their operations going.
The environment will surely benefit from the elimination of fossil fuels, which will also boost most sectors of the economy. Electric cars will become cheaper to operate than fossil-fuel-burning ones, for example. We will be able to create unlimited clean water — by boiling ocean water and condensing it. With inexpensive energy, our farmers can also grow hydroponic fruits and vegetables in vertical farms located near consumers. Imagine skyscrapers located in cities that grow food in glass buildings without the need for pesticides, and that recycle nutrients and materials to ensure there is no ecological impact. We will have the energy needed to 3D-print our everyday goods and to heat our homes.
We are surely heading into the era of abundance that Peter Diamandis has written about — the era when the basic needs of humanity are met through advancing technologies. The challenge for mankind will be to share this abundance, ensuring that these technologies make the world a better place.
Vivek Wadhwa is a fellow at Rock Center for Corporate Governance at Stanford University, director of research at Center for Entrepreneurship and Research Commercialization at Duke, and distinguished fellow at Singularity University. His past appointments include Harvard Law School, University of California Berkeley, and Emory University.
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