Asset Bubbles In Singapore?

I fear and can sense the asset bubbles that are forming in our equities and real estate markets.  As at to date the stock market is at 29-month high and the mortgage growth has grown by 23% - 10-year high.  With the latest Federal Reserve's US$600 Billion QE2 accompanied by  the low interest rate environment cheap money is flowing into our shores.The latest slew of IPOs (with a few mega ones) and bond offerings by listed entities has heated up the market. On the real estate front the Government has released many building sites for developers' bidding not forgetting the build-to-order (BTO) projects offered by the HDB.  The whole exercise gives one the feeling of bubbles frothing and buiding!  The Government has subsequently introducted the latest cooling measures to arrest the euphoria and madness!   We must not forget the lesssons of the economic bubbles in Japan from 1986 to 1991. This led to the "lost decade" of the Japanese economy!   In 2003/2004 the Japanese Stock Market and the Real Estate Market crashed - a unit in the financial district nose-dived to less than 1% of its peak value whilst a residential unit fetched less than one tenth. It is in Singapore's interest to be careful and mindful! 

Curbing Triad & Secret Society Activities in Singapore

I refer to the recent reports of senseless killing and maiming of bodies by members of such Societies in the local Sinagpore media. I think such wanton, cruel and merciless conduct  should be put to a stop immediately. Full stop! In Singapore in the 1950s and 1960s ganglands' rioting and fightings were not uncommon.  Almost daily you could  read of such accounts of ganglands' tussels over protection rackets and territorial rights. At that the time the Government of the day acted firmly and resolutely by invoking Section 55 of the Criminal Law Act by rounding up members of such Societies.  Section 55 allowed the Police to detain the secret society members without trial up to 12 months in the first instance.  I wonder whether Section 55 is still in our Law Statues or it has changed into another legal term.  When you mentioned Section 55 most secret society members at that time would twitched their ears and showed more restrain and respect before they embarked onto any wrongdoings.  The Police should spare no effort to enforce such a law on such persons.  We do not want to see Singapore living under a "cloud of fear" wielded by members of such Societies!  Any persons with inkling of links with such Societies should be rounded up and be incacerated!

Uncle Sam's Role

Uncle Sam's global banks' greed and financial engineering created the worst financial crisis of 2008/2009 since the Great Depression.  Subsequently the whole world was plunged into recession and many people were unemployed. With massive bailouts and stimulus packages, Uncle Sam managed to put the world's largest economy back on track.  It lowered its interest rate to almost zero and also instituted "Quantitative Easing 1" - printing money!  As a result the US dollars devalued and "cheap money" caused the world's commodities' prices, stock exchanges, real estates to escalate - my food prices,petrol, my cup of coffee, the gold jewellery that I buy, the property prices that are transacted are unimaginable!  Now there is talk of "Quantitative Easing 2" (printing more money) -  more cheap money looking for better yield creating bubbles in the world's stock exchanges, commodities, properties and prompting talk of currency wars. Uncle Sam must be mindful of what action it takes or does not take because it has implications and consequences for the whole world!  We all hope and trust its action will always be appropriate, measured and most important of all responsible!!!!!

Why Aren't The Americans More Appreciative of Their President Barack Obama

According to the latest polls, the approval rating of President Barack Obama has fallen to 44%.  He has my full sympathy for holding on to the world's most powerful job but alas a "thankless" job nevertheless!  The irony is that he has just rescued America from the worst financial crisis since the Great Depression of 1929 by providing massive bailouts for the auto and banking sectors and stimulus packages.  With almost a decade of overspending and over-leverage the American economy has to drain itself of the excesses and to slowly de-leverage.  An economy is like a battleship, it slowly turns around.  With unemployment at 10% it is inevitable that the American public is losing patience and heart!  However, I see the American President as a person who has "the helicopter view" of the whole problem: he knows the options, trade-offs, solutions,etc. I gauge this from watching the many media interviews/telecasts and town-hall meetings that he hosted. I guess you just have to give him time. I hope that his race and family background has got nothing to do with this!  American politics is complex and has many moving parts.  I just wish President Obama the best of luck!!!

Dan Buettner: How to live to be 100+ | Video on TED.com

Dan Buettner: How to live to be 100+ Video on TED.com

You may want to watch this video on longevity.  Just look out and learn the common denominators found in such communities. In this connection you may refer to my earlier post on 22 April 2010 where I listed broadly 3 main areas namely 1)Diet, 2)Activity, 3)Emotion which may account for their secret of their longevity.

SIA Bonds at 2.15% Coupon Rate

The SIA bonds at 2.15% coupon rate are not attractive.  You can buy better alternatives like the OCBC Preference Shares at the SGX (Singapore Stock Exchange).  Preference Shares have bond-like features like coupon rate (dividend payments) and tenure (5 years, etc.). The dividends payable range from 3.9% to 5.1% depending on which type of Preference Shares you buy.  At the moment you have to pay a high premium as the Shares are popular because of the low interest rate environment. Wait for the market to correct (expected to be next year & thereafter as the Federal Reserve will need to raise the interest rate sooner or later), then buy at the lower prices! Well, sometimes you just need to do some homework and research to look for better alternatives for your investments.  Happy Investing!

"Mum" and "Mom"

I always respect and love my Mom who passed away more than 30 yrs. ago. A village lady from a Kampong in Lorong Tai Seng area in Singapore, she was not fairly treated by her husband (my father). You see my father had a 2nd wife. Yes, in the 1950s & 1960s it was not uncommon for husbands to keep 2nd wives. Yet my mother did not harbour any animosity or rancour to the 2nd wife. In fact she cultivated good and friendly terms with her to the extent that when the 2nd wife invited her to make some investments in her (2nd wife) Indonesian business she happily did so. However, when President Sukarno announced his "Confrontation" Policy the business collapsed and failed. My mother did not blame the 2nd wife for the investment lost and kept "mum" on the matter in her own philosophical and quiet ways. In this connection I always wondered why an uncle (with his family in tow )from her village would always visit her without fail on the 1st day of the Chinese Lunar New Year! I never asked my mother but I guessed it was my uncle's way of showing and paying respect to a great lady! I will always cherish memory of my mother!!!

A New Creation

I take a deep breath
I feel my Presence.
My thoughts I forego
Consciousness brings my Being.
My emotions I control
Awareness takes over.
The world's woes before me
Acceptance is all I need.
What blessings are bestowed
I shall enjoy them fully.
God's spirit is my redemption
Enthusiasm fosters my new Creation.

...........by S L Koh

In View of the Coming Election

I always admire those residents who live in the only 2 Opposition Wards namely Potong Pasir & Hougang. The infrastructure & estate amenities in those wards are nothing to crow about compared to those in the PAP consituencies. As reported in the papers their legitimate requests for funds for estate improvements/upgrading, etc. were blocked/thwarted by rigmarole of regulations & rules. As a result the estates common areas like roads, playgrounds, etc. were left at best at their most functioning states possible. Consequently the prices of the flats are affected compared with other more endowed/constantly improved/upgraded estates like Tanjong Pagar, Ang Mo Kio/ Marine Parade. Yes, I give my applause, salute and admiration to those residents of Potong Pasir & Hougang!! You continually support your MPs though you suffer loss in the material kind!!! Yes, there is much all Singaporeans can learn from you!!!!!!!!!!! Bravo, Bravo!!!!!

What Is the Most Important Lesson We Can Learn From the Financial Crisis of 2008/2009

The most important lesson we can take away is to equip yourself with Financial Literacy. We heard of stories of investors who had been burned, swindled or conned into putting their hard-earned monies, nesteggs into investments or structured financial products which they had no idea of what they were all about. Investors who had bought Minobonds, Pinnacles Notes, DBS High Notes, etc. will know what I am talking about. In fact 2 of our PAP Town Councils invested $16 millions of our tax-payer monies into such failed products - a sad and bad relection of supposedly sane and superior minds behind such investments! So before you commit yourself to buying an insurance policy, car or mortgage loan, annuity, etc. understand what you have bought and if you do not understand the product, do not commit or buy it! Let's why understand terms like savings, interest rate, compound interest rates, inflation, etc (in other words Financial Literacy) will protect oneself against charlatans in the insurance companies, banks and financial institutions that are out there to take advantage or worse to cheat you of your hard-earned monies! I believe such Financial Literarcy classes/courses should start at our Secondary Schools/Polytechnics/Universities before our students venture out into the society to begin their careers.

Books by Eckhart Tolle

I have just finished reading 2 books namely "Oneoness With All Life" & "A New Earth" by Eckhart Tolle. He talks about awkening, the power of now; thoughts & the ego; unconsciousness & consciousness; forms & formless; being & beingness, etc. What I have learned is that there are 2 dimensions: the dimension of doing, creating, achieving and the spiritual dimension of being at peace with oneself, beingness, depth of the spirit from which everything flows. To achieve true freedom & enlightened living we need to know & to learn how to cultivate the spiritual aspect of living. Most of us live a lop-sided life emphasizing the doing & creating part and neglecting the spiritual aspect of being! For the Christians it is sensing or if you like cultivating the "spirit of God in us". Well, you can borrow the books from our National Library. Happy reading!

Is There Such a Thing as Strategic Gambling?

I have an interesting conversation with a male retiree in his 70s. He stays around Holland Avenue area. He told me he visits the Marina Sands casino 2 times a week. His contemporaries (all in their 70s) also join him in this weekly ritual. He will bring along $1200 each time to gamble on his favourite game the Roulette. I asked him whether he had been able to win against the House. He said he has a strategy playing the game - he will place his bets on 8 nos., black & white colours, etc. As I am not a gambler I could not understand let alone be interested in what his strategy was all about. He said if he made a profit of $1000 by 2 am he would call it a day. I guess he normally started his addiction from 12 mid-night. If he would to discover that the number he betted will persistently not appear he would just stopped temporarily or switched to another table. He said sometimes he would strike big in his winnings of thousand of dollars. However, he said should he be unlucky and lose his capital of $1200 he would not mind as he said he could afford it. According to him, sometimes making $200 to $300 per session will not be a problem !! I just wish him good luck and hope that one day his addiction will stop!!!!!!!!!

S'pore 45th Birthday.

With the impending 45th Birthday of the Nation, there is one burning issue I have been mulling over the past few years. Inevitablly after August 9 large and loud advertisements in our newspapers congratulating our Medals Honour winners are splashed for all to see. These advertisements will go on for days, weeks and even months only filling the advertising coffers of the Straits Times. These advertisements are put by businessmen, business conglomerates, MPs, residents committees and even Town Councils. I feel such unnecessary & "you-scatch-my-back-I-scatch-your-back" wontonly-wasteful spending is distasteful. I feel a more altruistic deed will be to contribute such spending (which I estimate to run into thousands if not millions of dollars) to Charitable Organisations. Maybe our MPs can take the lead in this! I wrote to the Straits Times on this matter last year. For obvious reasons the matter never surface in the Forum Column.

World Cup 2010 - Final Say

Spain is deservedly the World Cup 2010 Champion having defeated the Netherlands 1-0 during extra-time. Spain has exquisitely displayed the free-flowing and beautiful football that is identified with most South American teams. Being a European nation to have slowly transform to such a "samba" Team is I think in no small measure due to the huge import of South American players in the Teams that participated in the Spanish Laliga. Netherlands has on the other hand had morphed from a Team which displayed the "total football" which we remembered during Johan Cyruff's time to a Team which employed "dirty' & "ugly" tactics to win matches. In their Quarter-Final game with Brazil such wanton & dirty tactical foulplay was on dispay for all to see - pushing, pulling, tapping of ankles & knees to dislodge players. The Netherlands coach should have hidden his face in the sand for having nuturing such a Team. Yes, Spain the better Team is the World Champions!