Exuberance boiling over in the market for perpetuals

A good read for the weekend.

Exuberance boiling over in the market for perpetuals
Published 02 June 2016, 6:49 SGT
By Goh Eng Yeow

SINGAPORE - ONE of my favourite quotes on investments comes from Sir John Templeton who once noted that bull markets are born on pessimism, grow on scepticism, mature on optimism and die on euphoria.

This is what leads me to believe that given the moribund state of the stock market with overall daily turnover falling well below the $1 billion mark for many of the trading days in the past few weeks, there is little danger of share prices plunging for now since there are few signs of euphoria among traders.

But then I may be hunting for irrational investment exuberance in the wrong market.

...

Source: Straits Times
http://www.straitstimes.com/business/inv...perpetuals

(03-06-2016, 08:50 PM)cyclone Wrote: A good read for the weekend.

Exuberance boiling over in the market for perpetuals
Published 02 June 2016, 6:49 SGT
By Goh Eng Yeow

SINGAPORE - ONE of my favourite quotes on investments comes from Sir John Templeton who once noted that bull markets are born on pessimism, grow on scepticism, mature on optimism and die on euphoria.

This is what leads me to believe that given the moribund state of the stock market with overall daily turnover falling well below the $1 billion mark for many of the trading days in the past few weeks, there is little danger of share prices plunging for now since there are few signs of euphoria among traders.

But then I may be hunting for irrational investment exuberance in the wrong market.

...

Source: Straits Times
http://www.straitstimes.com/business/inv...perpetuals

In the case of Hyflux, (6%, in lots of 1,000 ) holders
can exit easily and with price transparency through the
local SGX

For others, perpetuals or not, it would be through their
RMs or brokers. And it is this route that incurs higher charges
with less transparencies in price and market.

Personally, I would not go for perpetuals... no end date and
a nagging worry in perpetuity if the company goes bust.

Even if its a bank, even if bond holders are first to get paid.
Money lenders need a tough arm twister to:

" return my money " besides "return on my money"

and retail bond holders have no arm twisters in their employ.