Saturday, June 14, 2014

World Cup impact to stock market?

World cup just begin in 12 Jun, it's an four year once event. Recently, I receive many query from clients who want to find out what would be the impact to the stock market during this month's period?
Well, unless you are new investor, most of investors are forgetful, if they don't record down "the history" and they may not know what's actually happen 4 years ago. I use to write a note on my monthly investment status, write down the reason why I buy or sell a stock, review on monthly basis and see if I follow my plan set accordingly. Even on the month I don't trade anything, will still write down the currently market position, such as total investment value base on market price and the feeling or thinking about the market condition on that time.
I can tell you, "World Cup" actually have to major impact to the stock market, if the market trend is on the way up, it will still on it's way except slow a bit during the month. I have checked all my record notes 4 years ago, 8 years ago and 12 years ago, almost all show the same result. That's for the "note book" if not, how can I possible to remember something happen 12 years ago?
Over these few years, I noticed my purpose or "objective" never change, I write down that wording on my first page of note book if I change to new one. My purpose of investment wording is very simple, it's "To create a consistent and stable income by invest in five start business". In fact, I learn something from the football game as well. In foot ball game we have a fix goal post, then every one will know their target or the purpose is the fix goal post. (lucky is fix one, not a moving goal post).
So investing in stock market is akin entering a football field, we need to flexible and change the strategy according to the conditions. We may have fighter/ striker, defender in mid field and goal keeper. Sometime we need to play defensive by holding more cash, sometime we need to be more offensive by turning the cash into more stocks. Anyway, since my purpose is for consistent income, hence, more than 50% of investment are in Reits. This will ensure that I have a sound sleep at night and no need to worry much about market condition, how about you?

Thursday, June 12, 2014

It has been quite sometime I have not write anything on this blog. Last Sat I attend a seminar talk, the title is related to making money in stock market. I think it's good for me to share some point here.

According to one of the speaker, the future star company that will give you profit is not plantation or property stock anymore. He think the idea that going to produce something new and sell to the rest of the world will make the nation rich. That's why one of the Obama's adgenda is to make a “change” by producing something new to the market.

Whereas another speaker recommend few potential stocks. The first one he recommended was ESC. It's a company who distribute computer (or ICT) and smart phone. With dividend per share of 5 cents, many thought the company is not attractive. The company is cash rich with EPS of 46 cents and could potentially give bonus issue as per history record shown they actually gave bonus issue few years ago. The only draw back is the profit margin very slim, however, this could mean the high entry barrier. Investor can research for Asus Zenphone which start to distribute by end of April and Lenovo product, if the selling continue to generate income, then the next quarter's profit will be good.

Opensys is another company on his list. According to the speaker, the company will continue to grow it's profit as the coming year will see most of the bank going to upgrade or change the ATM machine from normal to the latest 2 in 1 machine. (cash and ATM) How much profit going to generate, we don't know, but one thing for sure is the profit going to break record high, so do you think the stock price going to remain?

Another company, GDEX also on his list. The main reason is Singapore Post Ltd hold 25% of this company, and recently, Alibaba also become one of the major share holder for Singapore Post. Then people start to imagine how Alibaba going to bring more business for Gdex. Anyway, this company surely going to make money in next few years once the internet business become popular in this region.

My opinion, investment is long term process, hence, we need to find the company having some sort of monopoly and the best appear internationally , in this case, seem Gdex is one of the potential company in next few years if they successfully enter into Indonesia, one of the biggest population in this region.