A Christmas Card from your Investment Relationship Manager ;)
Best Regards,
Your Investment Relationship Manager
PS: Expect even better investment performance from us next year in 2009 
Multi-Millionaire Oei Hong Leong: Get Out When The Market Rallies!!
Mr Oei Hong Leong, the 29th richest man in Singapore who has the nickname “Golden Finger”, advised retail invetors to GET OUT OF THE STOCK MARKET WHEN IT REBOUNDS!! He felt that the US$700 billion package to bail out banks by buying their toxic mortgage-based debt is “FAR FROM ENOUGH” to restore stability in the financial markets. If u think that the market has bottomed, please thinking seriously again!! THE CAPITULATION IS NOT HERE YET! According to Mr Oei, we are now having the mortgage crisis, next to follow will be the credit card crisis. Trouble have spread from U.S. to Europe, slowly coming to Asia, ultimately will be hitting Singapore. I want to stress again: buying share now does not stack the odds of winning in our favor, we should be doing SHORT-SELLING through the legitimate way of using CFD (Contract For Differences).
Cheers
Source: Straits Times
Disclaimer: Please be informed that the above mentioned stocks/indexes/investment instruments are solely for the purpose of education; it is NOT a recommendation or an invitation to trade/invest. For trading/investment advice, please speak to your remisier, dealer representative or financial adviser. Please understand that there is risk in every trade/investment venture, know your risk first before you venture into any of them.
Is the Capitulation here? Time to go in for Bargain Hunting? NOT YET!!!!!
Dow Jones suffered a staggering 1874 points or 18.15% decline last week!! It sliced through the support levels of 10156, 9707 and 9369 like a hot knife through butter with total ease!! It should stage a brief rally at around 8300 level with the K-line (a proprietary tool of T3B System to assess the risk level of a stock or market index) at rock bottom level, which indicates an extreme oversold situation. Dow Jones’s next resistance will be 9043 and 9369 levels respectively. If the 8300 support were to be penetrated again, its next support will be at 7415 level, the low attained in 2003!!
NASDAQ ended last week down 297.88 points, a 15.3% tumble!! With its K-line at rock bottom, NASDAQ should find a support at the 1521 level. It’s next resistance will be at 1753 and 1889 levels. However if the 1521 were to be penetrated again, then we can expect NASDAQ to fall further to a possible low of 1109, last seen in October 2002!!
S&P 500 collapsed 18.19% or down 200.1 points last week!! It should rally from the support level of 942, which T3B System’s one-and only K-line indicates extreme oversold condition. The next resistance levels will be 1014 and 1069 respectively. If the 942 level were to be broken again, we may see S&P 500 heading south towards the 775 level, last attained in 2003!!
STI closed at 1948 last week, it is now down 50% from the high of 3906 recorded in October 2007!! A brief rebound is expected at the 1905 level and the bear rally will most probably meet resistance at the 2190 and 2277 marks. If STI were to pierce through the 1905 support level again, we can expect it to tumble to 1702 level or even lower!!
Capitulation or climax selling occurs when traders/investors PANIC SELL till the level that everyone who had to sell has probably sold. This is accompanied by MASSIVE VOLUME, which shows that everyone has given up on stock market and are desperately selling at any price to get out of the market. We may have started to see some sign of capitulation last week, but we have NOT witnessed EXTREME PESSIMISM yet! This means that we still have more room to drop before the REAL bottom arrives. If u think it is very cheap now, I advise u to think again!! What appears cheap now will get even CHEAPER!! We may have reached a bottom, but NOT the bottom yet!! For those of u who still have stocks that u may have bought last time till now, please take this good opportunity to dispose them during this bear rally. For those of us who have capitalised on the crazy market tumble by doing SHORT-SELLING, now is a good time to get out, take a breather and enjoy our harvest! It is good that the market is rebounding a bit so that when the bear rally cannot sustain and start to turn down again, we can go in for the kill one more time!!
Cheers
Disclaimer: Please be informed that the above mentioned stocks/indexes/investment instruments are solely for the purpose of education; it is NOT a recommendation or an invitation to trade/invest. For trading/investment advice, please speak to your remisier, dealer representative or financial adviser. Please understand that there is risk in every trade/investment venture, know your risk first before you venture into any of them.
STRETCH Your Mind To Reach Your GOALS!!!!!
When someone tells u that u can’t do something…….
Don’t worry! Look around…..
Consider all available options……..
Set your GOAL and GO FOR IT!!!!!
GO ALL OUT!! Give 200% of your BEST!!!!!
Begin with the END in mind!!!
STRETCH yourself! NEVER GIVE UP!!!
In the end, u will SUCCEED and prove them wrong!!!!!
Singapore is now in technical recession (which means 2 consecutive quarters of declining GDP) and we can expect tougher times ahead as the real recession hit us next year. BUT don’t despair, let’s all STAY POSTIVE! Nothing is impossible, if your heart is willing!! Now is the best time for us to consolidate our resources, set goals and TAKE MASSIVE ACTIONS to implement them. Later on when the economy recover and the good time is back again, we can ride on the next uptrend to reap the fruits of our hard work and DREAMS!!!!!
Cheers
Can the US$700 Billion Bailout Plan Help?
The US$700 billion bailout plan is just a shot in the arm for the US economy and financial market, it is only providing a temporary cushioning for the plunging confidence. It is NOT going to solve the messy credit situation (which has been snowballing for the last couple of years) overnight! MORE DOWNSIDE is expected for the coming months. If you feel that the stocks are cheap now and are thinking of going in for bargain hunting, think again! They will get even CHEAPER!!!!!
Cheers
Fannie & Freddie Bailout - U.S. Is “More COMMUNIST than China” : Jim Rogers on CNBC
Fannie Mae(the common name for the Federal National Mortgage Association) was born in 1938 under the leadership of Franklin D. Roosevelt to ensure a supply of mortgage funds under all economic conditions and to help lower costs to buy a home. It became a shareholder-owned company in 1968. In 1970, Freddie Mac(the acronym for the Federal Home Loan Mortgage Corp.) was created to provide competition and essentially ensure that Fannie wouldn’t have a monopoly on government-backed mortgages. Freddie basically does the same thing: “Reduce the costs of housing finance and expand housing opportunities for all families, including low-income and minority families,” according to its website. They are both government sponsored and shareholder owned. They do not have direct contact with consumers; instead, they work with lenders. The job of Fannie and Freddie is to buy mortgages from banks, savings and loans, credit unions, and other lenders to ensure that mortgage funds are consistently available. Together, they hold or guarantee about 50% of U.S.’s outstanding home loans. Steep home-price declines and a rise in mortgage delinquencies and foreclosures have badly hobbled Fannie and Freddie. The 2 firms have registered roughly $14 billion in losses over the past year. “If they had failed, the damage to the mortgage and housing markets could have had a catastrophic effect on the economy and could have hurt Americans’ ability to secure home loans, auto loans, and other consumer credit,” Treasury Secretary Henry Paulson said. The stocks of both Fannie and Freddie have plunged over the past year -each from the mid-$50s to the mid-single digits.
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“The nationalization of Fannie Mae and Freddie Mac shows that the U.S. is “more COMMUNIST than China is right now. You can see that this is welfare of the rich, it is socialism for the rich, it’s just bailing out financial institutions,” Jim Rogers, CEO of Rogers Holdings, told CNBC Europe on Monday.
Stock markets jumped after the U.S. government’s decision to launch what could be its biggest federal bailout ever, in a bid to support the housing market and ward off more global financial market turbulence.
But Rogers said in the long term the move spelled trouble. “This is madness, this is insanity, they have more than doubled the American national debt in 1 weekend for a bunch of crooks and incompetents. I’m not quite sure why I or anybody else should be paying for this. You certainly gonna see a huge jump in any financial institutions which owned a lot of Fannie or Freddie because they don’t have to worry about going bankrupt all of a sudden,” Rogers said. “Bank stocks around the world are going through the roof, that’s because they’ve all been bailed out. You don’t see the homeowners in Kansas going through the roof because they’re not being bailed out,” he added.
However, despite the rally in Asian and European markets, the decision to take over Fannie and Freddie is likely to cause more volatility and needs careful consideration by investors, according to Rogers. “It’s rarely good to jump in a moving bus and right now you got a lot of buses moving. I might short some more investment banks in the US, depending on how they rally over the next week, but other than that, I’ll just sit and watch,” Rogers said. He, who is short on U.S. bonds, said these are likely to fall while commodities may rally. “The 2 government-sponsored enterprises don’t have good loans on their books because everybody else took the good stuff and dumped the bad stuff onto Fannie and Freddie.”
From 2010, Fannie and Freddie will have to shrink their portfolios by 10% a year until they reach US$250 billion to reduce the risk to the taxpayer, according to the Treasury plan. “But this may put additional pressure on the housing market. That’s going to also ensure that house prices continue to go down. It’s going to be harder and harder to get a mortgage.”
“Investors should not pin their hopes on this year’s presidential election for a solution to the problems, as none of the candidates is likely to find one,” Rogers said. “This is a big huge MESS and neither one of them has a clue what to do next year. It’s going to be a MESS!”
(c) 2008 CNBC.com
Disclaimer: Please be informed that the above mentioned stocks/indexes/investment instruments are solely for the purpose of education; it is NOT a recommendation or an invitation to trade/invest. For trading/investment advice, please speak to your remisier, dealer representative or financial adviser. Please understand that there is risk in every trade/investment venture, know your risk first before you venture into any of them.
STI has BROKEN 2665 support level! Expect another 200 points TUMBLE to 2456!
Dow Jones closed at 11220, down 2.8% or 323 points for the week. It simply did not have enough strength to break the strong resistance of 11638. Furthermore, it broke the 11340 support level with BIG volume. This is a very negative sign which shows “distribution” or unloading by the big boys or big funds! We may see further weakness and the next support level for DOW Jones will be 10680.
NASDAQ plummeted 4.7% or 111 points to close at 2255 for the first week of September. It has broken both the support level of 2345 and long-term support line with BIG volume, this spells trouble!! It may tumble further and be supported at the 2155 level.
S&P 500 slipped 3.2% or 40 points to close at 1242 for the week. It broke it’s stubborn support of 1256 with increased volume. It is now testing the 1219 support level. It’s next support will be another 51 points down at 1168 level if it continue to fall.
STI GAPPED DOWN 51 points or 1.97%. to close at 2574 last Friday! It has broken both the 2700 and 2665 support levels with big volume, a very negative sign!! STI ended the week down 6% and is currently at a 2-year low since 4th October, 2006. It is likely to tumble further till the next support level of 2456. If this 2456 level were to be penetrated too, then we can expect another 200 points collapse to 2277!
Negative market sentiment has been driven by weak U.S. market as well as growing concerns that global growth is seriously slowing down. Market sell-down was fueled by the report that the U.S. unemployment rate jumped from 5.7% to 6.1% - its highest since September 2003. This raised concerns about the pace of consumer spending in the months ahead. Continued concerns about the potential for further write-downs at financial firms and speculation that more hedge funds could be in trouble and on the verge of liquidating assets also cast a pall on the market. Many investors are either taking cover to pare their losses or simply watching from the sideline. U.S. data due to be out this week includes consumer credit, pending home sales, retail sales for August and trade balance for July.
I want to reiterate that holding stocks now is VERY DANGEROUS! For those of you who proclaimed yourselves to be “long-term investor”, this time round u are NOT going to be one, instead u are going to be a VERY “long-term investor” because we are now going through a GLOBAL FINANCIAL CRISIS! It is going to deliver even more devastating blow than the Asia financial crisis in 1997, 1998. Congratulations to those of US who are still hanging on to our short positions!! I simply cannot understand how one CANNOT make money by doing short-selling in the current bear market!
Happy SHORTING! Cheers
Disclaimer: Please be informed that the above mentioned stocks/indexes/investment instruments are solely for the purpose of education; it is NOT a recommendation or an invitation to trade/invest. For trading/investment advice, please speak to your remisier, dealer representative or financial adviser. Please understand that there is risk in every trade/investment venture, know your risk first before you venture into any of them.
We’ll be WORSE OFF whoever’s new U.S. President : Jim Rogers on CNBC
About Jim Rogers
Jim Rogers is the CEO of Rogers Holdings. He is also an author, world traveller and successful international investor. He has been frequently featured in Time, The Washington Post, The New York Times, The Wall Street Journal, The Financial Times and most publications dealing with the economy or finance. After attending Yale and Oxford University, Rogers co-founded the Quantum Fund, a global investment partnership together with billionaire investor, George Soros. During the next 10 years, the portfolio gained 4200%, while the S&P 500 rose less than 47%. Rogers then decided to retire at age 37 but he did not remain idle. In 1990-1992, Rogers fulfilled his lifelong dream: motorcycling 100,000 miles across 6 continents, a feat that landed him in the Guinness Book of World Records. He chronicled that journey in his bestseller book:“Investment Biker”. In 1999-2001, Jim embarked on a Millennium Adventure, which he travelled for 1101 days on his round-the-world, Guinness World Record journey together with his wife. That journey of passing through 116 countries, through half of the world’s 30 civil wars and over 152,000 miles became the subject of Rogers’s second book: “Adventure Capitalist”. His also penned other bestsellers such as ”Hot Commodities” in 2004 and the recently released “A Bull in China”.
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“Neither one of these guys understands what’s going on, they don’t understand currency markets, economies, they don’t understand the world,” Rogers said. “Both of them are going to cause us more problems than they’re going to solve.”
Democratic nominee Sen. Barack Obama pledged to reverse the economic failures and blamed the Republicans for the poor shape of the U.S. economy in his speech, formally accepting to run for president for his party. But Rogers said this was unlikely. “He’s talking about spending a lot of money … I don’t consider that very good, going deeper into debt. The U.S. is already the largest debtor nation in the history of the world. I’m not sure that that’s going to solve anything.”
“Deep changes are needed in the U.S. system and big Wall Street banks should not be rescued by the authorities when they run into trouble, to avoid moral hazard. They’re bailing out Wall Street, because all their friends are on Wall Street,” Rogers said. “When Ben Bernanke gets a phone call from the head of Lehman Brothers, he takes the call. But if some poor school teacher in Oklahoma calls him, he doesn’t take the call. He’s dealing with his friends on Wall Street trying to save them when in fact he should let them fail. That would be the better solution, at least for 300 million Americans.”
“The economic stimulus package launched this year to try and fend off recession in the U.S. is unlikely to have positive consequences in the long term, despite a higher-than-forecast advance of gross domestic product in the 2nd quarter”, Rogers said. “Supporting troubled investment banks instead of letting them go bust prevents a cleansing of the economy while putting additional burdens on taxpayers, but neither of the 2 candidates is likely to stop this. If you happen to be friends with whoever wins, sure, you’re going to have a better time in the next 4 years. But the rest of us, the 300 million Americans, are going to be worse off in 4 years. In fact the world will be worse off.”
Part 1
Part 2
© 2008 CNBC.com
Disclaimer: Please be informed that the above mentioned stocks/indexes/investment instruments are solely for the purpose of education; it is NOT a recommendation or an invitation to trade/invest. For trading/investment advice, please speak to your remisier, dealer representative or financial adviser. Please understand that there is risk in every trade/investment venture, know your risk first before you venture into any of them.
7 Secrets of SUCCESS
What is SHORT-SELLING? How to short-sell the current bear market to make money?
“Short-selling” or “shorting” is the strategy of selling a stock that you do not own, in the hope of buying back later at a lower price. It is different from the normal strategy of “go long” - buying a stock in hope that the price will rise. Through using Contract For Difference(CFD), your broking house will first borrow the shares from someone who owns them, you can then proceed to short-sell the borrowed shares. If the price were to drop, you can later “cover short positions” by buying back the shares and your broker will return them to your lender. Your profits will be the difference between the price that you shorted and the price it was bought back, minus the commission and interest for borrowing the stock.
In this current bear market, you will definitely be making money if you are doing short-selling. But please DO NOT perform “naked short-selling”, whereby you did not borrow the stock in the first place and you try to short and buy back within a single trading day. This is very dangerous because if the price were to go against you and if you fail to buy back within the same day, Singapore Stock Exchange(SGX) will conduct a forced buy back for you, you will be at the mercy of SGX as you have no control over the buy back price.
Ausgroup is 1 of the stocks that I have shorted after it’s support line was broken at S$0.865 at high K-line 3 months ago. Both the support line and K-line are proprietary tools of T3B System, which can hep a trader to assess the price condition and risk level of a stock. Ausgroup has been tumbling together with the general market and till now, it has plummeted almost 58%!!!
Another stock that I shorted is Wheelock, a property stock. Seeing the support line being penetrated at S$2.08 at high K-line(which represents low risk level) gave me the green light to go in for the kill!! Since then, it has toppled 42% and I am still holding on tightly!!!
Like what I have been sharing with you guys, NOW is the BEST time to do short-selling as the general market continues to weaken everyday. If one were to buy and hold stocks at this moment, it will be very disheartening and painful for him as he sees his stock prices erode as each day goes by. But if you are shorting stocks right now, this period of time will be a very profitable one for both of US as we laugh our way to the banks!!!!!
Happy shorting!! Cheers
Disclaimer: Please be informed that the above mentioned stocks/indexes/investment instruments are solely for the purpose of education; it is NOT a recommendation or an invitation to trade/invest. For trading/investment advice, please speak to your remisier, dealer representative or financial adviser. Please understand that there is risk in every trade/investment venture, know your risk first before you venture into any of them.
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