Create Wealth Through Stocks Trading

DOW - Santa's worst enemy came. Beware folks!

2009-12-18T07:31:00.000+08:00

Noble's Elman gives up CEO role, becomes exec chairman

2009-12-17T19:28:00.000+08:00

* Noble founder and CEO Elman to become executive chairman

* Mgt change to facilitate succession planning

SINGAPORE - Singapore-listed Hong Kong commodities firm Noble Group on Thursday moved to address shareholder concerns about succession by elevating chief operating officer Ricardo Leiman to CEO.

The firm's founder and current CEO Richard Elman will become executive chairman, Noble said in a filing to the Singapore stock exchange. The change in appointments take effect on Jan 1.

'The goal is to enable senior management to grow into their new responsibilities while at the same time providing all stakeholders with the comfort that Richard Elman is still spearheading the group's strategy,' the firm said of its founder who is around 70 years old.

David Eldon, Noble's non-executive chairman, will remain on the board as a senior independent and non-executive director, the company added.

Noble, with interests from Brazilian sugar to Australian coal, is the only major global commodity trading house with a public listing. Its shareholders include China Investment Corp, which earlier this year bought a 14.5 per cent stake for US$850 million. -- REUTERS

Cash may not be king after all

2009-12-17T13:22:00.000+08:00

05:55 AM Dec 17, 2009The investment outlook for 2010 is shaping up fairly well. In this article, director at UOB Asset Management, Anthony Raza, sheds light on why investors should get invested and be balanced.

In 2008, many investors learnt that cash was a great investment. Equities in markets around the world fell by 50 per cent and 60 per cent and even the bluest of blue chips did not emerge unscathed.

Cash investment became less attractive this year as equities rebounded by 20 per cent in developed markets and over 60 per cent in emerging markets.

Has the rally been missed? Most data have indicated that many investors are still holding cash after pulling their money out of equities last year; we are concerned that investors may have learnt the wrong lesson from the recent crisis.

Staying in cash in 2010 could expose one to more risks than expected. On a risk/reward basis, cash is not very attractive. Inflation is growing as a risk, especially in Asia, and cash has no inflation protection.

With the average bank deposit interest rates at less than 1 per cent, there is no compensation for the risk of an investor's cash dwindling in value.

These are clearly difficult and confusing times, and investors are likely getting conflicting advice.

If you were to poll five economists about what will happen over the next few years, you would likely get five very divergent views.

Some may say that inflation is a big risk while others will see deflation as the risk; some think that the recovery will be "V" shaped while others say that it will be "L" shaped.

Without even stating our view on the trajectory and risks in the economy, we would say that, historically, investment in equities during such similarly confusing times usually have long periods of strong performance.

So, even if you are not convinced that all is right in the global economy, there is, however, a strong case for you to get invested in the markets again.

In 1933, 1975 and 1982 were periods with very deep recessions. In 1933, the United States gross domestic product (GDP) fell by 25 per cent from pre-bust levels, unemployment was over 20 per cent and there was persistent deflation.

In 1975, there was stagflation (low growth and high inflation). In 1982, interest rates in the US were over 15 per cent and the unemployment situation was similar to what the US is facing now.

For the 1933 and 1975 recessions, the economic problems took around seven to 15 years to really work out.

But the markets did perform during these periods: In 1933, the stock market rally began and lasted for five years and increased over 300 per cent; from 1975, the stock markets rallied for two and a half years and increased almost 90 per cent. And 1982 was the start of the longest bull run in US equities that lasted for 18 years.

Unlike most investors in developed markets, local investors tend to be less balanced in their investments.

When willing to take risk, many investors will go to the extremes of placing heavy allocation in small-cap equities; similarly, risk-averse investors will go to the extremes of putting their life savings in principal-protected structured notes.

Neither may be advisable strategies over the long term. A more advisable strategy is to invest in a balanced portfolio of equities, bonds, properties, commodities and cash.

Don't stay on the sidelines or wait for the market to reach bottom to get invested again.

In our view, 2010 is shaping up to be a fairly good year for markets despite all the economic confusion.

Our investment stance is to stay invested and maintain a healthy balanced portfolio to diversify the risks in the current investment landscape.

We are overweight in equities with a focus on emerging markets.

In bonds, we are overweight in corporate bonds with a focus on emerging markets. In commodities, our only overweight is in gold.

Lottery: Buying ToTo? Evil Of Gambling?

2009-12-17T08:34:00.001+08:00

The Evils Of Gambling?

Gambling is an important service industry in the economy and generate many job opportunities, and they are also big sponsors in sport and charity events. Indirectly, gamblers are helping out in good causes in a small way through "small sacrifices".

Addictive or compulsive gambling is evil and not gambling itself. Anything that you got yourself addicted is evil or just bad, e.g. addicted to womanizing, drinking, gaming, etc.

I know one guy got addicted to running marathon, everyday running 2-3 hour on weekdays, and on weekends running 4-6 hours on the road. Even on Chinsese New Year, he also runs. One day, I jokingly told him that even animal like Horses also don't run that many hours.

I only buy ToTo. What so evil about buying ToTo? It is probably burning away less than 20 bucks a month to buy a nice Dream of firing your Boss.

If I can save a total of $240 per year by not buying ToTo, can anyone recommend me which counter to buy? DigiLand?

If you save a few bucks a month by not buying ToTo, I can guarantee you that you will never be a Millionaire overnight. So don't be a Nut, who want to be a Millionaire overnight?

Biosensor - Today Got East Wind and it went BOOMZ!

2009-12-16T19:49:00.000+08:00

http://createwealth8888.blogspot.com/2009/12/biosensor-weekly-nicely-trending-up.html

Why BOOMZ today? Some are better informed, isit?

STI closing a new high in 2009 at 2,810.82

2009-12-16T17:42:00.000+08:00

Is Santa coming to Town?

How to ruin your chances of prosperity?

2009-12-16T11:18:00.001+08:00

Sheyna Steiner
On 6:00 am EST, Tuesday December 15, 2009

Prosperity and financial freedom are burdens. Where's the excitement in knowing you'll always have enough money to cover any contingency and pay all your bills? All that free time and security would be enough to bore anyone to tears.

To avoid that fate, most people can ruin their chances of prosperity simply by doing as little as possible: Show up at work, do just enough to stay employed and strive for mediocrity.

But for those who just can't seem to beat prosperity off with a stick, there are overt ways to foil long-term financial success.

4 ways to thwart prosperity

Don't set goals.
Dillydally.
Think inside the cubicle.
Invest in the hottest sectors.

Don't set goals

As they say, you can't reach your destination if you don't know where you're going.

The mantra preached by self-help gurus in every field, from weight loss to dog training, is to set clearly defined goals. The same is true for finance.

Whether your money goal is to pay down debts or become a billionaire, write it down and then figure out how to reach that milestone.

"First we need to define what prosperity means to each of us, meaning are we financially free? Or do we have no mortgage? Do we have money in the bank?" says Justin Krane, Certified Financial Planner and president of Krane Financial Solutions in Los Angeles.

"If someone says they want to retire, that is not as clear and vivid as, 'I want to be able to travel and gift money to my kids,'" he says.

Before you make wealth-building a priority in your life, set your goals.

Dillydally

Saving and investing is a mandatory part of building wealth. It may not make you a Maserati-driving, champagne-swilling magnate, but it plays a vital role in fostering good financial habits.

Think of it like establishing good grooming habits. Heidi Klum probably has a great skin care routine, and though you won't become a supermodel by following her example, you may end up with nice skin.

Saving and investing work best in the long run if you start early. To gum up your prosperity plans, take a few years off between 18 and 40.

Blame it on math and compounding interest.

"One of the lessons we try to teach young people is that the savings curve is not linear; it's geometric," says Jack Reutemann, Certified Financial Planner and president of Research Financial Strategies in Rockville, Md.

"To save for retirement, if you wait until 35, you have to double the money you would have had to save if you started at 25," he says.For instance, a 25-year-old would need to save $167 a month for 45 years to amass about $881,000, assuming an annualized 8 percent return.

Sadly, saving the same amount with an identical return for 35 years will get you just about $383,000.

Think inside the cubicle

Keeping your head down and your nose clean is a good way to stay employed, but it's not the best way to get rich.

While company executives rake in the dough, the rank and file often get the short end of the stick -- they're subject to layoffs and pay freezes while CEOs make millions. Even for star employees, there are no guarantees of ongoing employment, hence, very little control and security.

The big money is in entrepreneurship. The big losses are also there. Some people who may be inclined to start their own business may never actually do it because of the perceived risk.

"When you talk to the average person about starting a business, they find the idea very risky. When you talk to people who have started a business, they didn't find it very risky because they had special gifts or talents or skills and never thought that it would fail," says Dan Danford, chief executive officer of the Family Investment Center in St. Joseph, Mo.

"Most people perceive a higher level of risk than is actually there," he says.

Invest in the hottest sectors

Everyone has heard of someone who's made a mint in the market -- the guy who bought Apple when it went public or Caterpillar in the 1990s.

But for just a little more luck and investing savvy, any of us could have a pot of gold in our brokerage account. More likely than not, the average investor is not doubling or tripling her money in a year. Instead, he or she is likely earning less than the market return.

"The average investor return is two-thirds of the S&P," says Reutemann.

Kelly Campbell, a Certified Financial Planner at Campbell Wealth Management in Washington, D.C., has also found that to be true.

"When the S&P lost 38 percent in 2008, most investors lost 30 (percent) to 60 percent of their portfolio. Why someone would lose more than the market did is a mystery to me," he says.

Once a sector or a stock is hot, it's a fool's bet to jump on the bandwagon. But it can be hard to resist the siren song of massive returns in a short period of time.

Investing is difficult -- people devote their lives and careers to studying markets and finance. There's no shame in admitting that despite skimming a book and some online articles about investing, you still don't know everything there is to know.

"People have to educate themselves and find their way to a competent adviser who will help them buy low-cost index funds," Reutemann says.

If you're not up to doing it yourself, an ethical adviser can shape your investing strategy and also help you see the big picture and attain your financial goals.

Noble - Got it @ $3.07

2009-12-16T10:27:00.000+08:00

Will I be the Greater Fool as Noble has been under selling pressure?

Kep Corp - Will it be able to remain in the consolidating range or breaking down?

2009-12-15T21:49:00.000+08:00

Hyflux - Breaking out???

2009-12-15T19:49:00.002+08:00

Critical illness insurance pays you for living

2009-12-15T13:18:00.001+08:00

http://bullythebear.blogspot.com/2009/12/uncertain-world-and-its-asymmetrical.html

Let me join in the debate ...

Understand what are Critical illness insurance plans?

Critical illness insurance plans are benefit plans (No reimbursement on medical expenses) that pay the amount equal to sum assured, if the critical illness strikes, irrespective of expenses incurred on treatment.

In typical critical illness insurance plans, a lump sum allowance is paid irrespective of the actual medical expenses. Most critical illness plans cover cancer, heart attack, diabetes, multiple sclerosis, kidney failure, and stroke.

While planning a purchase of critical illness insurance cover, you should try to estimate what your loss of income will be and how much money you may need to compensate for the earning power that the illness deprives you of.

Having covered by CI is only one part of the story, the second part of story, where do you find money for your treatment as CI doesn't reimburse on medical expenses incurred?

I think we must first be covered by Medical Insurance and H&S, and then either by CI or other alternatives to cover part of lost incomes.

http://createwealth8888.blogspot.com/2009/11/critical-illness-cover-pitfalls.html

DOW touched 10,500 at closing!

2009-12-15T07:28:00.000+08:00

Does it mean more to come for window dressing or

locking in profit for possible fund redemption for Christmas and New Year spending?

Govt of Abu Dhabi Agrees to Fund $10 Billion for Dubai World Debt

2009-12-14T13:14:00.000+08:00

Dubai said on Monday it had received $10 billion from fellow UAE member Abu Dhabi to help it repay $4.1 billion Islamic bond maturing on Monday

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Clearly, the Market Sharks are the ones that rule the Market and make the Rules for the Market!

Who are the Greater Fools now?

Insurance and Organic Foods

2009-12-14T11:15:00.000+08:00

http://createwealth8888.blogspot.com/2009/10/insurance-human-asset-and-liability.html

Insurance can be thought as expenses or premiums spent to hedge against unforeseen incidents. Likewise, it is getting popular for people to consume only organic foods, and basically, they are willing to spend extra money or premiums to hedge their health for better well-being.

If one have plenty of resources to spend by all means spend more on insurance premiums to get the best coverages available and eat only organic foods.

Olam Weekly - Still consolidating?

2009-12-13T18:58:00.000+08:00

No obvious sign of breaking down yet? Probably still in consolidating mode to shake off weak holders. Historically, Olam trade higher than Noble, will it play catch up?

Are High Ratio Dividend Payout Stocks Make A Low Risk Investment? - Part 2

2009-12-13T10:53:00.006+08:00

http://createwealth8888.blogspot.com/2009/11/are-high-ratio-dividend-payout-stocks.html

Stocks can have high dividend yield for two reasons:

The company's future earning doesn't seen rosy and investors are valuing it at lower stock price causing the yield to increase temporary and not really attractive to potential investors.
The company is unfamiliar to investors, its price will be a poor reflection of the stock's true value. But, if the company has been around for many years, can the company still unfamiliar to the market?

Dr Michael Leong is a private investor who focuses on investing long term in selected stocks and shares has this advice in one of the chapters in his book: "Your First Million" on buying stocks based solely on "dividend yield" and he doesn't think that is the right way. Capital appreciation is far important than high dividend yield. Go and read this chapter to find out more.

I also love dividend play stocks but I treat the dividend as safety net if the stock price falls temporary but not as a buying decision. Technically on chart-wise, I must see that the stock price has the probability of moving higher before considering it in the watch-list.

Tips On Child Life Insurance - Part 4

2009-12-13T10:13:00.001+08:00

http://createwealth8888.blogspot.com/2009/12/tips-on-child-life-insurance-part-3.html

small change, invest, Dec 13, 2009, thesundaytimes
by Ignatius Low

Buying policies: Don't go with the flow.

Main points that I strongly agree with:

Don't just let the FA assume that you will eventually need to raise a family and you want a hassle-free way to invest your money
Must fully understand that traditional Whole Life plans, the relatively high premiums are partially used to provide the cover, but the rest are invested in a fund that pays returns. This is why the policy eventually breaks even and later has a cash value that you can take out.
Don't buy simply because you are young under the impression that it was cheaper if they started young. Yes, it is true that you lock in lower premiums when you buy a policy in 20s. But, for many people, a true understanding of their needs in life doesn't come until they are more mature. Is it worth that discount to get locked into a policy that may not suit you? Or is it better to wait a few years until you have a clearer view of yourself, your investment skills and the products on offer before you commit?
Insurances are long-term products that need to be serviced for years, and often decades. And it would be tragic to chalk up these costly commitments for the wrong reasons.
Don't buy from anyone towards whom you feel an obligation

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From my own personal insurance experiences, I didn't manage to escape from "Don't buy from anyone towards whom you feel an obligation". I think I finally signed on the dotted line more of an obligation as they are my relatives and close friends and helping them to meet their sales target so they could move up in their insurance career.

Singaporeans unclear about retirement income - Part 3

2009-12-13T09:31:00.000+08:00

http://createwealth8888.blogspot.com/2009/06/singaporeans-unclear-about-retirement_17.html

To depend on two common sources of passive income:

stock dividends
interest from saving

Unless the size of investment portfolio and saving account are significantly large enough to generate passive income in excess of expected expenses; it may not be sustainable due to inflation and partial draw-down to meet any shortfalls.

May be it is wise to include some sort of smaller scale active income to supplement or complement the retirement fund for another few more years after retirement; and thereafter to solely fund the expenses from passive income.

Aim For It And Then Enjoy It!

2009-12-12T21:30:00.005+08:00

There are two things to aim for in life; first, to get what you want; and second, to enjoy it. Many achieve the first, but only the wisest achieve the second - Logan Smith

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CreateWealth8888:

About Wife:

It is so true and it doesn't only apply to money. It is also true for wife. A man spent lots of energy and time to woo his girlfriend to become his wife; but, some guys end up divorcing his wife.

About Children:

Some husband and wife slog days and nights to bring home more income to provide for their family; but, hardly have more time for their children and leave their children either to the maids or care-takers, and thinking that their children are happy by providing them with more materialistic goods, luxuries and expensive overseas holidays; but, actually when the children are young they just wish that their parents can spend more time together with them.

Noble Weekly - Signs of more profit taking?

2009-12-12T13:16:00.000+08:00

Signs of more profit taking as it keeps hitting a new all time high as investors/traders are getting nervous of losing their paper profits.

Technically, despites more profit taking this week, the weekly trend is still remiain intact on the uptrend.

Why Do We Still Need To Read Charts? - Part 3

2009-12-12T10:39:00.000+08:00

http://createwealth8888.blogspot.com/2009/11/why-do-we-still-need-to-read-charts.html

Let us take a look at MTQ for a real life example of "under-valued stock" and does chart reading help in making buying decision for TA cum FA investor?

Mr Bolton is mainly a fundamentalist, but uses technical analysis which helps in timing and size decisions. 'If I'm looking at a stock that has done well for seven years, I look at it differently from one that hasn't done well,' he says. 'A stock that has done well has most of the good news in the price. If things change, there are lots of profits that people can take so investors are likely to suffer on the downside.'

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Stock Market - A Greater Fool Theory?

Look at the shaded portion in the chart for price and volume action. It is telling us that many buyers had already bought them very cheap and awaiting to sell to the greater fools. If you look even closely at the price and volume actions after the shaden portion, it has been trading in low volume. It is telling us the earlier buyers have not been able to find greater number of greater fools to sell.

I still like what Anthony said: 'A stock that has done well has most of the good news in the price. If things change, there are lots of profits that people can take so investors are likely to suffer on the downside.'

Look at the chart, does it have evidence of good news in the price?

CPL Weekly - CapitaLand growing presence in China

2009-12-12T09:47:00.002+08:00

PROPERTY firm CapitaLand announced yesterday that it has a pipeline of 14,000 homes in China and plans to launch an average of 5,000 units a year there with its strategic partners.

The announcements came as CapitaLand celebrated the 15th anniversary of its entry into China with a gala dinner. The festivities were held at Shanghai Port yesterday.

It aims to grow the figure to around $10 billion over the next three to five years. Its China arm will then constitute between 35 per cent and 45 per cent of the group's total business.
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CreateWealth8888:

If you love the investment theme on "Invest In China" or "China Will Overtake US as the world biggest consumers"

Don't you think you should have some long positions in CPL which have 35-45% of its total business exposure to China's economy and market; and with 15 years of corporate exposure and experience in the Chinese businesss environment and government culture?

I have two positions at $2.90 and $3.78.

I will most likely to keep $2.90 for continuous exposure to the investment theme on "Invest In China" or "China Will Overtake US as the world biggest consumers"; while I await for CPL to announce its special dividends? Wondering how much cash will CPL be returning to its shareholders?

Chart-wise, I believe it is still consolidating.

DOW back to the last high. Is Santa Coming To Town?

2009-12-12T07:54:00.000+08:00

Income from Active Investing

2009-12-11T22:23:00.000+08:00

Learn the fine art and science of active investing as soon as possible so that you don't need to worry about finding another job after retiring at 62 or 65.

You should be able to generate income from your investments after you have retired or asked to retire.

I have quite a number of ex-colleagues who were active in the stock market while they were still working and naturally after retirement they continue into "full time" active investing or trading.

I think by the time we have retired at 62 or 65, by then we should have little family financial commitment so it is not too difficult to make enough money for weekly kopi, roti prata and nasi lemak from the market.

STI - Still steady and waiting for window dressing soon?

2009-12-11T21:40:00.000+08:00