Saturday, June 26, 2010

The REIT - how it benefit you

Want to take the ownership of the property and participate the income generated by the property? If the answer is yes, then buying REIT could be an option, instead of buying physical asset.

There are numerous advantages to own the REIT over the physical asset. One need not require large capital and labor requirement, as the job already taken care by the management of REIT. Furthermore, the fund of the trust are pooled together to buy numerous properties which provide greater diversification to offset the risk of negative impact over single property.

When you buy REIT, you are essentially buying a physical asset with a long expected life span and potential for income through rental generated by the property and potential property appreciation. Since REIT require to distribute 90% of their income as dividend, meaning the holder is able to participate the profitability of the rental income.

With so many way to invest your money, stock, bond, mutual fund, property, REIT and others, it's important that any decision make should be well informed and follow with detail research if possible. REIT could be an unique type of investment that can fit to your investment portfolio.

Below latest article from The Star.

Tuesday, June 22, 2010

Is Dow Jones Stable now?

Dow Jones Industrial Average index show the up trend again after nearly one months' correction. The question is whether the market will continue to go up from this point, especially yesterday show one Shooting Star. I would expect index to challenge 30 days MA, if it can hold firm, then the chances are high for it to continue moving forward.

This week got another breaking news, Fannie Mae(FNM) and Freddie Mac (FRE) going to delist from NYSE. Again, proof the theory is correct, never invest in problematic company. If you hold the stock before the announcement made, sell immediately even if you have to encounter huge loses. This is to protect bigger loses that will follow if you continue to hold on to this stock.

From our experience, the delisting process will move the stock to trade on the over the counter bulletin board *OTC BB. The spread between the bid and ask prices having a big gap, hence there are substantial costs involved, only few people or market makers willing to trade and causing share volatility increase.

Saturday, June 19, 2010






產業投資信託 - 不必大筆投資, 省卻後續麻煩

亞洲Hall Chadwick主席古瑪表示,大馬人平均一生中投資最大的資產類別就是產業,除了具抗通膨同時也是財富的象徵,更重要的是可留給下一代繼承。



















Posted and commend added from 星洲日報/投資致富‧產業焦點‧2010.05.29