Mar 30, 2013

Era of Cheap Money

Low Interests Rate and Pumping Money into the system seems no longer able to simulate the economy vibrantly. We can twist and turn, the fact is US economy is just not moving fast enough despite all the measures taken. Instead it causes inflation to developing nations.

This keeps me thinking why is this so ? For many years since i last remembered, economic progress is about Cycle of Boom and Bust. Is like Ying and Yang. This time round, money is everywhere except investment for recovery growth as the yield is low.

New and Stronger economic activity has to come with motivation of human kind ingenuity. What so being less well off or in desperate condition less engineered from an educated and well connected population ?

Cyprus took the first drastic step of punishing depositors when banks go bust. To the commoner, is a personal disaster especially for those near or retired. Nevertheless it may be a blessing in disguise for the small island in debts.

Japan did similar in another style by engineering inflation. Yes. By shrinking the population purse through inflation, they will have lesser purchasing power overtime which will push people to innovate to stay above the water. 2% inflation target is nothing to shout about frankly but is a step in the right direction nevertheless. Will they be able to finally break years of economic stagnation ?

Will other troubled nations follow ?


Mar 8, 2013

Property Clamp Down

I have been busy lately in the matter of the heart. I have 2 days cool down period and i finally remember my blog. haaa. What should i write ?

When the gov introduced the most comprehensive property measure in Jan this year, this keeps me thinking how to profit from it that week.

We know there is a lot of cash in the systems and it has to go somewhere. Where can it goes ?

1. Stock Market
2. Car
3. Tour
4. Education
5. Casino
6. Fixed Deposits
7. Gold
8. Property
9. Married
10. Baby
11. Charity
12. ....

Most listed are expenses except Stocks. With Gold and Property more of inflation hedge. I choose Stock Market and double up my investment.

Two months later, i am right and wrong.

Right for increasing my stock portfolio significantly. Wrong for not doing enough.... I still have too much cash idling ...

I avoided property counters logically except Reits. Has been enjoying the ride since.
Wish has been better.