The Next Big Crash - Are You Prepared?

(30-08-2013, 05:12 AM)memphisb Wrote:

(29-08-2013, 10:28 AM)shoeboxlife Wrote: People always say stocks are better than property as they are liquid and can easily sell when you need the money fast.

True that. But can you guarantee all the stocks that you need to sell to raise the money (be it for medical emergencies, fire sale property good buy etc) are above water??

For players who look to stocks as a place to park their idle funds or worse emergency funds, be really careful about this.

Food for thought.

If you have a huge capital, property investment would be wiser choice.
Retail investors, blue collars have fixed and limited funds.

Considering property investment comes with substantial down payment upfront, it would be more preferable for most of us to invest in stocks with diversified portfolio to get capital gains.

All investments including stocks AND property comes with market and economical risks. Recent government property bubble measures such as the 3 year increased wait time for PRs will definitely have an impact of the seller market at least for the next 3 years with the new PRs.

It is the also the responsibility of the good investor/trader to check if the stock that they are getting are liquid and and future catalyst exist.

Why not you shed some light on why you probably think property investment be more liquid then stocks?

Haha, i actually meant to suggest that they are both equally illiquid (if stocks not managed properly) or liquid (if property not managed properly resulting in forced liquidation)!



Follow up question: if you have 500k sgd, where would you put it? Property or stocks?

^^^ Just to add that when we compare the 2, we need to compare them on a unleveraged basis.

Most people often have good experiences with properties because they tend to buy and hold as it is the only roof above their head, and hence inflation helps in the long run when the property is geared 4X.

Good point specuvestor.

Leverage does help one level up the game in the early stage.

I for one am of the belief that if one is eligible for a BtO hdb flat it would be foolish not to go for it as a first stepping stone to create good seed money.

You can geared up on your shares too.

From what I know, you can buy some shares, go to the bank, ask for loan using the shares as collateral, use the loan to buy more shares! Wonder if the bank allows the new shares to be use again (and again.. and again...) as collateral...

Of course you can. But generally the man on the street doesn't do that while property is usually geared. It is an experiential bias.

FX by itself is boring moving 10% range most of the time in a typical year. But mum and pop will tell you it is risky because the products are inherently leveraged. Perceptions and reality sometimes are not the same.

(28-08-2013, 05:18 PM)WolfT Wrote: ...
There will only be excitement and happiness only when u have a big enough war chest to take advantage! ha...
For those all in there will be fear...

One way to enlarge your war chest is to take an equity loan on your fully paid-up private property. Of course there will be some charges involved, and interest to pay, whether or not you invest the money raised. For me, I will only do that when situation is really bad.

Otherwise, I do "hanging pyramid" investing - split the cash/CPF/SRS/bond funds I have into 15 portions. If STI drops by 10% from its peak, dump in 1/15. Drops another 10%, another 2/15... Drops to 50% of its peak, dump in the last 5/15. So far, only manage to execute the 1/15 during the European crisis when STI drops to 2600+. After that, I have been waiting and waiting.

What to buy is another matter. If there is no obvious choice, I just buy the market i.e. STI ETF.

Every month, the salary not spent is also thrown in, as a cure for my itchy fingers. (Basically to buy STI component stock that has good PER, PBR, Div. I use an excel spreadsheet to decide, giving a heavy weight to Div...)

Hopefully the market is more happening soon.

There did seem to be some good buying opportunities in last weeks downtrend.

will US be attacking Syria?

If yes, would it be good to long gold and oil?

The Collapse of The American Dream Explained in Animation

http://www.youtube.com/watch?feature=pla...II9NZ8MMVM

(30-08-2013, 01:32 PM)NTL Wrote: You can geared up on your shares too.

From what I know, you can buy some shares, go to the bank, ask for loan using the shares as collateral, use the loan to buy more shares! Wonder if the bank allows the new shares to be use again (and again.. and again...) as collateral...

Ha! Ha!
i like that.
(and again.. and again...) and again, if only we can. (i think LEE KA SENG and the likes of him can)
Isn't banks take our deposits and do that again and again as loans to the people and institutions? All the banks have to do are to have some "Reserved capitals" (in case there is a run on the banks) as stipulated by MAS's regulations based on International Banking's regulations or practices.
Who says the World is unfair or fair?

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(30-08-2013, 11:39 AM)shoeboxlife Wrote:

(30-08-2013, 05:12 AM)memphisb Wrote:

(29-08-2013, 10:28 AM)shoeboxlife Wrote: People always say stocks are better than property as they are liquid and can easily sell when you need the money fast.

True that. But can you guarantee all the stocks that you need to sell to raise the money (be it for medical emergencies, fire sale property good buy etc) are above water??

For players who look to stocks as a place to park their idle funds or worse emergency funds, be really careful about this.

Food for thought.

If you have a huge capital, property investment would be wiser choice.
Retail investors, blue collars have fixed and limited funds.

Considering property investment comes with substantial down payment upfront, it would be more preferable for most of us to invest in stocks with diversified portfolio to get capital gains.

All investments including stocks AND property comes with market and economical risks. Recent government property bubble measures such as the 3 year increased wait time for PRs will definitely have an impact of the seller market at least for the next 3 years with the new PRs.

It is the also the responsibility of the good investor/trader to check if the stock that they are getting are liquid and and future catalyst exist.

Why not you shed some light on why you probably think property investment be more liquid then stocks?

Haha, i actually meant to suggest that they are both equally illiquid (if stocks not managed properly) or liquid (if property not managed properly resulting in forced liquidation)!



Follow up question: if you have 500k sgd, where would you put it? Property or stocks?

Ha! Ha!
If i have to answer, of course stocks lah. Not only you can not do much with property with 500K, you can not move your capital around; Can not moves around means "Dead capital". No?