Investment options
13-12-2010, 10:31 PM
if i remember correctly, HKMA hong kong side also upped their deposit insurance coverage from next year onwards, however it is relatively much more in terms of gross amount and % increase compared to singapore's small 50k
15-12-2010, 01:10 PM
(03-11-2010, 05:57 PM)yeokiwi Wrote: If you know what the malaysia EPF(Singapore CPF equivalent) is investing with their members' $$$, I don't think you want to put your money in. Hi Yeokiwi, Care to elaborate more on why you feel that the stocks they have invested in are high risk stocks and is like playing with fire? Pardon me for my ignorance as I don't seem to see the high risk. Thank you.
15-12-2010, 02:37 PM
(15-12-2010, 01:10 PM)flinger Wrote:(03-11-2010, 05:57 PM)yeokiwi Wrote: If you know what the malaysia EPF(Singapore CPF equivalent) is investing with their members' $$$, I don't think you want to put your money in. The total invested amount in equities is around 32% of the ETF portfolio or RMB49 billion. About US6 billion is invested in foreign equities or RMB18 billion. The total equity invested in Malaysia companies is probably RMB30 billion. As for the loans, it was not clear whether most of them are malaysia corporate loans or foreign loans but I would think that significant part of the loans are mainly malaysia corporate loans. In conclusion, I would think that half the $$$ of the ETF's members are reinvested in malaysia companies. So, 1) members get their salary from malaysia companies 2) members contribute their money to ETF 3) ETF buys malaysia companies' stocks. Essentially, the ETF's members are indirectly supporting the malaysia stock market!! Looking through the list of companies, I would think that the existence of ETF is not to build nest eggs for the members but to provide stock market support and loans for the Malaysia GLCs. MAS... losing money for years and it is still on the list. Sime Darby.. involved in a scandal recently. http://www.malaysianmirror.com/media-buz...ys-scandal Personally, I would not want to touch any of the malaysia's GLC. They are too intrinsically linked with the political figures.
15-12-2010, 03:50 PM
Thank you for the reply. I understand your views and outlook on why you specified that.
Flinger
i agree that investing in M'sian equity is riskier. Similarly the RM is riskier than the SGD. Both are reasons for different returns. Hey, more risk needs more returns!
16-12-2010, 10:55 AM
Perhaps Singapore is more in danger of a property bubble than say, Malaysia? After all, recent evidence points to about 50% of loans being property-related. Assuming the property market does crash, it will not do good for equities as well.
My Value Investing Blog: http://sgmusicwhiz.blogspot.com/
16-12-2010, 11:08 AM
(16-12-2010, 10:55 AM)Musicwhiz Wrote: Perhaps Singapore is more in danger of a property bubble than say, Malaysia? After all, recent evidence points to about 50% of loans being property-related. Assuming the property market does crash, it will not do good for equities as well. I beg to differ on this one. The reason why property prices has been going up is because of liquidity flooding into asia...the only growth region. There are not too many places to put your cash to use now. If they nip the bud on properties through policies then the only remaining place to put cash will be in equities. cash is giving almost zero returns and bonds is in bubble territory already. this is why you get the fund managers bullish stance survey for 2011, rightly or wrongly we shall see.
16-12-2010, 11:12 AM
(16-12-2010, 11:08 AM)Jacmar Wrote: I beg to differ on this one. The reason why property prices has been going up is because of liquidity flooding into asia...the only growth region. There are not too many places to put your cash to use now. If they nip the bud on properties through policies then the only remaining place to put cash will be in equities. cash is giving almost zero returns and bonds is in bubble territory already. this is why you get the fund managers bullish stance survey for 2011, rightly or wrongly we shall see. Hi Jacmar, But what happens if interest rates also rise in tandem with cooling measures for property? Rising interest rates would be bad for equities, so where will the money flow to then? 
My Value Investing Blog: http://sgmusicwhiz.blogspot.com/
16-12-2010, 11:21 AM
Hi Jacmar, But what happens if interest rates also rise in tandem with cooling measures for property? Rising interest rates would be bad for equities, so where will the money flow to then? [/quote] we all agree(?) that singapore cannot raise interest rates as the monetary policy is tied to US indirectly. For singapore to raise interest rates would be suicidal. Go read the latest Edge mag. Singapore this year has an inflow of cash equivalent of 90% of GDP, the highest in the world! already a big headache. Only way interest rates can go up is if the FED raise interest rates. according to the "experts" even if it does goes up maybe in 2012 it will still be marginal and not a huge incrrease. the equity risk premium spread is still wide enough.
16-12-2010, 11:39 AM
(16-12-2010, 10:55 AM)Musicwhiz Wrote: Perhaps Singapore is more in danger of a property bubble than say, Malaysia? After all, recent evidence points to about 50% of loans being property-related. Assuming the property market does crash, it will not do good for equities as well. For those who are interested, the ADB's economic monitor pdf http://aric.adb.org/pdf/aem/dec10/Dec_AEM_regional.pdf The 50% property related loan were referred in Figure 34. But, looking at the Note1 for Singapore, "for Singapore, business loans for building and construction, and housing and bridging loans for consumers of domestic banking units;" Singapore is undergoing extensive infrastructure building and upgrades for the last few years. Two IRs, MRTs, condos, HDB flats, Marina Bay, hospitals, new university etc. Theoretically, the property related loan should drop by next year. |
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