Posts

Showing posts from May, 2009

Housing Investment- how good is return rate?

Image
Singaporeans are obsessed with housing as an investment. Considering the large number of people scrambling to buy a house even during such times are telling signs that you can know nothing about equities, forex, commodities and derivatives, but you can never miss out on properties. “Land is scarce, so property is a sure win bet here” are one of the main reasons why the HDB auntie next door and the lawyer opposite are saving hard to fund their next property. I rarely hear people asking how much they will be yielding on their housing investment if you buy and rent for 20 years. Many are simply just interested in the absolute gain. The absolute monetary gain (if any), is likely to be large as housing like derivatives are leveraged products! Before I comment further, let’s do some maths here to see if it is really worth our while to buy a 2nd property for investment. Assumptions: 35 year old Mr. Tan just bought a new 99 year leasehold, 1000 square feet property beside Kovan MRT station, fo

Dow - Consolidation before the Bull run start

Image
Last week, seem US Dow has put the brakes on the recent rally after nearby 200 days moving averages. Many now wondering if this pause in upward momemtum is the end of the rally or a short break before the bull start again. The oppinion we gathered from most of traders suggest that its more toward the bull side, meaning after short while of pause, Dow could move toward the resistance level of 9000 points. Let see what the result in next few days.

NASDAQ break through 200 Day M.A.

Image
Here is more comforting information that the US bull run may not be over so soon. Many analysts consider a stock moving above its 200-DMA to be a buy signal. Furthermore, it is also said that a bull market can be defined as one where major market averages are trending up above their 200-DMA. Through most of this bear market, we haven't seen many stocks or ETFs anywhere close to their 200-DMA. Now, that seems to be changing. Thanks to the advent of ETFs in the US, it is easier to track movements in sectors. The sector ETFs are composed of many stocks, and that lends more credibility to the moving averages. There are a number of sector ETFs as well as the NASDAQ 100 have moved above their 200-DMA recently. Technology iShares Network iShares Semiconductor iShares Consumer Discretionary iShares In addition, the NASDAQ Composite is a hair away from crossing over its 200-DMA and the Telecom iShares. Materials and Industrials ETFs are also only a few points away their 200-DMA. Looking