| NAME: Montague Lord |
| Date 2009-01-02 11:51:26 |
At the end of yesterday's episode, you presented a list of recommended books for reading and managing your money. Could you please send me that list. Thank you, Montague
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Hi,
Here are the titles recommended by industry experts who came on our show:
1. The Intelligent Investor by Benjamin Graham
2. Common Stocks and Uncommon Profits and Other Writings by Phillip A Fisher
3. The Essays of Warren Buffett: Lessons for Investors and Managers by L. A. Cunningham
4. Traders, Guns and Money by Satyajit Das
5. Value Investing by Sebastian Chong
6. Managing Your Money by Fong Wai Mun & Koh Seng Kee
Regards,
Gen |
| NAME: Steven Ong Peow |
| Date 2008-12-10 15:28:23 |
Hi, Gen. In view of what happened in Mumbai which brought about a terrible loss of a fellow Singaporean, I would like to find out whether will my Wholelife policies pay my family the Sum Assured if I'm the one who get killed by these terrorists?
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Dear Steven,
According to Life Insurance Association, Singapore, a Whole of Life policy is a "life insurance" type of policy and it will pay on the death of the Life Assured regardless of the cause of death other than suicide that takes place within one or two years of policy inception; whether it be "one year" or "two years" will depend on the policy wording.
So yes, a Whole of Life policy will pay on the death of the Life Assured due to a terrorist act.
Regards,
Gen |
| NAME: veronica kok |
| Date 2008-12-10 13:06:12 |
For 2009, what are best to invest in and why?
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Dear Veronica,
Most of the industry experts I spoke to mentioned that equities are still a good bet in the coming year, due to their current low prices.
Grahame Evans, Chairman of Professional Investment Advisory Services recommends companies that have a good track record in profitability, especially those in growth areas such as:
1. Healthcare - reason being, he says " as developing countries like China and India become more and more wealthy... the demand for better healthcare is going to actually come into play." He also mentioned that ageing population in many Western countries and growing life expectancy will boost demand for healthcare in general.
2. Food - A necessity despite economic conditions. Citing the growing middle class in developing countries, Grahame sees the need for a "greater export of food to different parts of the world".
3. Financial institution and bank - "Many that were affected by the subprime crisis have been over-solved and a careful selection of financial institutions is going to give you some upside" he says.
Thomas Kaegi, Senior Economist at UBS AG recommends that investors consider corporate bonds in the coming year. Corporate bonds are trading at very cheap levels and it is actually a good chance to purchase them at current prices. While it is true that with the global economic crisis and recession, default rates will go up significantly, Thomas maintains that corporate bonds are still attractive even if we assume varied extreme scenarios in terms default rates. Ernest Low, Head of Fund Analytics from Providend Ltd also commented that investment grade corporate bonds are currently attractive as some offer a yield of around 6 to 8 per cent.
In addition, Thomas thinks that in the later half of 2009, oil prices are likely rise due to imbalance demand and supply situation. He also says that "due to the demand and due to higher economic growth, oil prices are expected to rise somewhat to 80 dollars by the end of 2009". However a similar rally in commodity prices in general - as observed over the last couple of years - is not expected.
As a guide, in such an environment, industry experts advise investors to diversify across asset classes and across regions as a way to minimize risks.
Regards,
Gen |
| NAME: Ho, Ho |
| Date 2008-12-10 11:28:29 |
Kindly share the list of Books on Investments recommended in your program last night. Thanks alot.
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Hi,
Here are the titles recommended by industry experts who came on our show:
1. The Intelligent Investor by Benjamin Graham
2. Common Stocks and Uncommon Profits and Other Writings by Phillip A Fisher
3. The Essays of Warren Buffett: Lessons for Investors and Managers by L. A. Cunningham
4. Traders, Guns and Money by Satyajit Das
5. Value Investing by Sebastian Chong
6. Managing Your Money by Fong Wai Mun & Koh Seng Kee
Regards,
Gen |
| NAME: Edykasman |
| Date 2008-12-10 08:37:52 |
Hi Ms Gen,
Do you mind if i ask you which book do you recommend about stock market? I am currently stepping in stock market but i do not know what and how to do the homework. I appreciate your time to go through my words. I am looking forward to your reply soon.
Regards,
Edykasman
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Dear Edykasman,
I have spoken to several industry experts - most of whom have been featured on our show - and complied a list of most recommended titles for your reference:
1. For investment in the Singapore stock market, read Value Investing by Sebastian Chong.
2. Also read Common Stocks and Uncommon Profits and Other Writings by Phillip A Fisher. This book has a list of things that a successful investor should look for in his common stock investments.
3. The following titles are suggested for general investment knowledge not particular to stock investing:
-The Intelligent Investor by Benjamin Graham
-The Essays of Warren Buffett: Lessons for Investors and Managers by L. A. Cunningham
-Traders, Guns and Money by Satyajit Das
- Managing Your Money by Fong Wai Mun & Koh Seng Kee
Regards,
Gen |
| NAME: nps |
| Date 2008-12-04 15:56:55 |
| please give more details about dual currency investment |
| NAME: nps |
| Date 2008-12-04 15:56:51 |
| I started dual currency investment a year ago, and cos of the current economic crisis, I'm now holding AUD and put in time deposit. What should I do now in order to recover some of my loses? Your advice is badly needed. Thank you. |
| NAME: Mrs Sim |
| Date 2008-12-02 14:15:45 |
I need to ask whether the market prices has hit bottom for unit trusts cos I was told that it has nd that I should buy funds like NTUC Prime fund.I was thinking of NTUC Growth Plan,something they say is safe but I don't have proof in print about that.Other fund that I'm interested in is a 50%/50% bond and equity (global) fund. Is it wise to buy any of the funds now?
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Hi Mrs Sim,
I approached NTUC Income's Chief Actuary, Mr Ken Ng, and he thinks it is a good plan to buy, because it offers attractive return and some element of insurance protection. There is also the flexibility to choose a range of terms from 5 years to 20 years. The growth plan offers participation in the form of bonuses.
With regards to 50/50 global fund, Mr Ng suggests that you look at NTUC Income's balance fund, which is an ILP (investment-linked product) fund. He says that it is rated 3A by CPF which means it is medium to high risk and it is broadly classified.
His advice would be to space out the market over a period of time and therefore diversify the timing of the mark. This is a concept called dollar cost averaging.
However before buying into a product because of what you have heard, it is key to check with a professional who understands your unique circumstances.
Regards,
Gen |
| NAME: CC-Lim |
| Date 2008-12-02 14:09:14 |
Hi Gen
Thank you for this programme which I find it very informative and give people like myself a newbie at handling our own finances another source of info instead of just relying on our financial advisor/bankers.
I need advice on dual currency accounts (DCA). Last year, in order to try to get a better return of my investments so as to generate more money to send my child for overseas studies in 2 yrs' time, I on the recommendation of my banker,invested abt 100K in the Aust-S$ DCA. While we did earn a fair bit in the beginning, but as you know due to the sudden change in the financial market, I was left holding the A$(at A =S.28). This has now depreciated to almost on par with S$. Currently I left the money in the A$ FD. While I may not need the money now, what should I do next? Should I do the DCA with US$-A$ as my child will be studying in the States. Is this idea a disaster? Another question on currency -is it advisable to buy some US$ say 30K to hedge against further increase in the exchange rate of the US$. I am not sure whether this is a risky move as the rate cld also fall. However, in this case, unlike the A$, I need to use the US$ for my child US education so even the rate falls, I should not be that adversely affected as compared to A$. Is this thinking/rationale corrrect? Thank your kind assistance. With regards.
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Hi CC,
Dual currency accounts provide investors with potentially enhanced returns, but there is also a higher risk associated with these products.
Mainly, your returns can very possibly be converted into the weaker currency.
Experts say that it is time to get proactive and make some changes.
Sebastian Arcuri, Head of Personal Financial Services, HSBC, says that since you have a need for US dollars to fund your child's education in the States, a pairing between Aussie and US dollars appears to make sense to cover your financial needs. You will have the potential to earn higher returns which are more than the 3.5-4, 4.5% that you will get in a normal Aussie dollar time deposit.
Nobody knows whether the US dollar will appreciate in value in the next 2 years. But it makes sense to buy US dollars to hedge against a further increase in the exchange rate of the US dollar. You may want to hold your horses for a while though!
Mr Arcuri says that you may consider waiting until the rate of exchange of Aussie dollars against US dollars reaches a more attractive level, since you have a relatively long investment horizon of 2 years. In addition, you may consider the possibility of splitting the investment and going at different spot and conversion rates, so that will act as some sort of diversification.
Ultimately, the most important thing is for you to have a clear view of where this currency pairing is headed.
And as usual, always consult your financial planner for a better understanding.
Regards,
Gen |
| NAME: Tay Mong Seng |
| Date 2008-12-01 15:48:43 |
Hi Gen,
How to get a video copy of Cents&Sensibllities 1&2.
Thanks. |
| NAME: fcham |
| Date 2008-12-01 12:24:49 |
| Is it more safe to buy Austrlain $ tha NZ$ for long term deposit?? |
| NAME: lee hock kim |
| Date 2008-11-20 11:01:04 |
| I have some unit trusts 1K and now drops to 0k.Please advise |
| NAME: foo soon hing |
| Date 2008-11-20 11:00:55 |
| I am holding Allianz RCM Global High Payout Fund. Please advise whether this unit trust is safe to hold on. Thank you. |
| NAME: Eddie |
| Date 2008-11-17 19:43:56 |
with the recent spotlight on the danger of many hedge funds going bankrupt. Is it wise to consider selling my hedge funds which is reputable fund house that is PERMAL Fixed Income.
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Hi Eddie,
Ernest Low, head of fund analytics at Providend Ltd, says that hedge funds are having a difficult time at the moment as several of them are unable to rollover their credit facilities to leverage, or finding that their borrowing costs have spiked. He adds, 'We are also concerned that the large spate of redemptions in this space will also aversely affect existing unit-holders. While we recognize that hedge funds can provide good diversification in troubled times, we just think that the overall risks of hedge funds being forced to close down outweigh the potential benefits at this point in time.'
However, he thinks that some hedge funds are still going well at this point and they can be kept, especially the one that you’re holding. But 'as hedge funds tend to be a black box, we are cannot say with certainty that nothing will go wrong with this fund,' he adds. As long as redemptions are not too significant and the underlying fund managers are able to perform well going forward, you should be fine. You should request for monthly updates on this fund from the adviser whom you purchased it. You may also want to keep yourself updated on the fund size to assess for yourself whether the fund is shrinking too quickly.
You've also got to ask yourself some hard questions before making a decision.
Dr Melvyn Teo who is Centre Director for the BNP Paribus Hedge Fund Centre says that if you're strapped for cash, by all means, pull out your investments from your hedge funds. But if you're not cash constrained, then this may be a good time to ask some very tough questions, like, 'Do you have enough cash to meet your redemptions and your margin calls?', 'What are you doing to manage risks in such an environment?', 'What are the potential difficulties and opportunities you will face in the coming year?'
**Note that the redemption of the hedge funds can take a long time, as long as 3-9 months depending on the fund. Some hedge funds that are facing large outflows may also lengthen the notification period or temporarily suspend redemptions.
Regards,
Gen |
| NAME: achia |
| Date 2008-11-17 19:42:29 |
Dear Gen, I've invested in a hedge fund in Australia. I must admit I'm not knowledgeable about such investment. Pls advise,under current situation, what are the risks of such investment, and should I get out of it now? Thanks for your help.
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Hi Achia,
It is difficult to advise adequately as we do not know the hedge fund that you are holding.
That said, Ernest Low, head of fund analytics at Providend Ltd, says that hedge funds are having a difficult time at the moment as several of them are unable to rollover their credit facilities to leverage, or finding that their borrowing costs have spiked. He adds, 'We are also concerned that the large spate of redemptions in this space will also aversely affect existing unit-holders. While we recognize that hedge funds can provide good diversification in troubled times, we just think that the overall risks of hedge funds being forced to close down outweigh the potential benefits at this point in time.'
Dr Melvyn Teo who is Centre Director for the BNP Paribus Hedge Fund Centre said that there are 3 risks that investors need to watch out for:
1. Market risk
Very often funds, due to the nature of the investment strategies, have returns that are positively correlated with the stock market or with the bond market.
2. Operations risk
Sometimes funds may be run very badly, so even though they are doing decently on the investment side, they might wind down because they are badly managed.
3. Liquidity risk
Because a lot of funds trade thinly traded securities, like corporate bonds or convertible bonds, and therefore during times of stress when they have to pull out funds quickly from their investments they might have to sell at fire sale prices, and this will sort of hurt their performance.
However, some hedge funds are still going well at this point and they can be kept. Thus whether one should sell off the hedge fund depends on the actual fund that you are holding, says Ernest.
Note that the redemption of the hedge funds can take a long time, as long as 3-9 months depending on the fund. Some hedge funds that are facing large outflows may also lengthen the notification period or temporarily suspend redemptions.
Regards,
Gen |
| NAME: ALICE |
| Date 2008-11-07 14:35:53 |
Hi Gen,
Where can I read the episode on Propety? I missed part of it today. Also can you give me the contact no. of the mortgage consultant from BC Group (?)
featured in the Property episode?
Thanks. |
| NAME: Goh Hoon Keng |
| Date 2008-11-07 14:34:51 |
I bought some shares from HSBC & OCBC. Kindly advise me whether to sell it or not.HSBC :First Bridge &
Templeton Global. OCBC are these two shares:
Alliance &
Accumulator. |
| NAME: Veronica |
| Date 2008-11-06 14:12:10 |
Currently I have the following unit trusts investments:-
1. Barclay Equity Select Income - Investment $10,000
2. Barclay entertainment Select Income - Investment $20,000
3. Schroder Emerging Market Funds - Investment $3,000
Investments 1 and 2 values had dropped from $30,000 to $18,000. Investment 3 had dropped from $3,000 to about $1,000 plus.
Please advise if I should withdraw or leave it as it is. If I were to just leave the investments as current value, how long do you think I will need to wait to see the value resumes to principal sum?
Appreciate your advice. Thanks very much.
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Hi Veronica,
The fall in Net Asset Value of funds is a direct result of plummeting stock prices around the world. Hence began a phenomenon of panic selling as investors wary of further losses started selling their funds at record speed. Experts I spoke to resonate that this is the time when investors should be reviewing their investment goals.
For example, Mr Ho Kien Hung of Alpha Financial said that if your investment objective is retirement and you have a very long time horizon for this investment then perhaps you should be holding on to your investment. “Because whenever the market drops, there’ll always be a day when the market will come up again and recover,” he says. So although your investment drop has been substantial, you should always be looking back to your investment objectives and fall back on that.
No one can predict accurately what will happen to the markets over the next few years. But market watchers and analysts from all sectors have indicated that the current recession is likely to continue in the next 18 months.
Regards,
Gen |
| NAME: Sharon |
| Date 2008-11-05 14:43:57 |
Congrats for a thought-provoking debut episode which I just saw. Apprec if you could get tips from your financial advisers on what US stocks are value stocks worth considering for investors like me who are planning to buy US stocks which are falling to be within budget. Some rationale on the choice of US stocks will be useful. Of course, must be prepared to hold them in long haul.
Nice Warren Buffet quote -- I offer another one by Mr Buffet: Most people get interested in stocks when everyone else is. The time to get interested is when no one else is.
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Hi Sharon,
How do you know which value stocks are worth considering in times like these?
First you have to evaluate the company. Look at the management of the company – is it sound? Does the business provide products or services that people are constantly in need of? What is the likely potential growth? Does it have stable and predictable future cashflow?
Experts agree that information is power and you need to do your homework before investing in a large market such as the US.Remember, it is not just information, but information processing is key as well. For example, you can form a support group of investors whom you can exchange information with.
Next, determine which sector you’re interested in or more inclined towards.
Mr Lim Eng Hai, CEO of the Securities Association of Singapore, says that if you have no preference, then just look for index stocks and pick the worst hit. He said, “Normally the conventional idea is that the cyclical sector will be the worst hit. And the worst hit will recover the best. And this has been a banking crisis. So if you can go out there and look for a good banking stock, or a good insurance stock, and you can satisfy yourself that this is not one of those that’s going to disappear in the next few months, because companies will disappear in this huge economic crisis, then that is a good place to start.”
However, according to BlackRock’s vice president, Bob Doll, the worst is not yet over for financials and he continues to recommend underweight positions. Despite the pullback in oil prices, BlackRock considers the energy sector attractive, as well as the technology and healthcare sectors. |
| NAME: Irvine |
| Date 2008-10-31 18:01:58 |
Can help put Cents & Sensibilities II
Episode 1
on youtube? or send me a summary? because i have missed the show today. Thanks alot. |
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