Wednesday 30 October 2013
Friday 25 October 2013
HDB resales price drop for the first time over 4 years
Read this article:-
"According to HDB's results released today, the resale price index dropped 0.9%, the first time that the index declined since 1Q 2009 when deep recession hit.
Transaction volume was also lower, falling 13% from the previous quarter to 4529 cases. Comparatively, there were 6560 deals done in the 3Q of last year. A dropped of one-third comparing YOY.
The overall median COV had dropped more than 45% to its current $17,000 in 3Q 2013 compared to $32,000 at the beginning of 2013.
Economists and analysts claimed that the price trend is due to stricter controls on home loans. Reduction of the mortgage servicing ration to 30% of borrower's gross monthly income. Coupled with new BTO flats on offer. HDB is on track to launch 25,000 new flats this year, with about 5,000 due to released next month. PRs having to fulfil 3 years requirement before they can purchase a resale flat and so on."
Remember I talked about property on 1-September. Think twice before you decide to purchase an unit. This is just the beginning. More will comes, in regardless HDB or private. In fact some areas are selling with zero COV and some even to the extend of selling under valuation.
My advise, think before you act. As what I said in the 1-September posted, some people said the housing price in Singapore no matter what, 10 years, 20 years it will go up as Singapore has limited land space. Make sense. But, have they watch out and calculate the interest rate. Have they forgotten what happened during the Asia crisis? Am I hurry to get a house now? If not, why rush? Wait, and if I can buy an unit with 20% to 30% lower, why not?
"According to HDB's results released today, the resale price index dropped 0.9%, the first time that the index declined since 1Q 2009 when deep recession hit.
Transaction volume was also lower, falling 13% from the previous quarter to 4529 cases. Comparatively, there were 6560 deals done in the 3Q of last year. A dropped of one-third comparing YOY.
The overall median COV had dropped more than 45% to its current $17,000 in 3Q 2013 compared to $32,000 at the beginning of 2013.
Economists and analysts claimed that the price trend is due to stricter controls on home loans. Reduction of the mortgage servicing ration to 30% of borrower's gross monthly income. Coupled with new BTO flats on offer. HDB is on track to launch 25,000 new flats this year, with about 5,000 due to released next month. PRs having to fulfil 3 years requirement before they can purchase a resale flat and so on."
Remember I talked about property on 1-September. Think twice before you decide to purchase an unit. This is just the beginning. More will comes, in regardless HDB or private. In fact some areas are selling with zero COV and some even to the extend of selling under valuation.
My advise, think before you act. As what I said in the 1-September posted, some people said the housing price in Singapore no matter what, 10 years, 20 years it will go up as Singapore has limited land space. Make sense. But, have they watch out and calculate the interest rate. Have they forgotten what happened during the Asia crisis? Am I hurry to get a house now? If not, why rush? Wait, and if I can buy an unit with 20% to 30% lower, why not?
Sunday 20 October 2013
STI should not have a problem to cross 3200 and probably 3230 which may give some resistant
Finally, House of Representative passed legislation to increase debt ceiling and re-open the government after 16 days of shutdown. The bill will finance the federal until 15-Jan'14 and borrowing limit would be raised until 17-Feb'14.
China third quarter GDP matched analyst forecasted number 7.8%. With these 2 good news we see S&P hit another record high 1745 on last Friday. NASDAQ crossed previous 3817 high, closing at 3914 on last Friday. Analyst and economist think that because of the earlier debt ceiling issued, tapering will only be kick off on 2014. December Christmas is coming. With these few reasons, I see the possibility of DOW hitting another record high of around 16,000 by this year.
STI should not have a problem to cross 3200 and probably 3230 which may give some resistant to STI. Nevertheless 3280 to 3300 will be a challenge to STI.
Now to December should be a good months for equities market. By having said that, a few things that require us to take note, recent companies reports (index up but your counter flat, remember to select the correct stock) and the monthly US economic reports. Analyst and economists think that tapering will only be kick off in 2014. What happen if say Bernanke next month announce tapering to be kick off in December? Something I need to watch out for. Lastly, any unforeseen things happen.
Happy trading. For STI to move, blue chip and STI counters need to move. Then follow by mid cap and lastly penny counters. Lately, Asiasons, Blumont and LionGold shocked everybody. Big boys, fund managers and retailers, all got burned. Avoid penny stock for the time been. Nevertheless, penny stock will be back again. (STI chart refer to my last Friday posted)
China third quarter GDP matched analyst forecasted number 7.8%. With these 2 good news we see S&P hit another record high 1745 on last Friday. NASDAQ crossed previous 3817 high, closing at 3914 on last Friday. Analyst and economist think that because of the earlier debt ceiling issued, tapering will only be kick off on 2014. December Christmas is coming. With these few reasons, I see the possibility of DOW hitting another record high of around 16,000 by this year.
STI should not have a problem to cross 3200 and probably 3230 which may give some resistant to STI. Nevertheless 3280 to 3300 will be a challenge to STI.
Now to December should be a good months for equities market. By having said that, a few things that require us to take note, recent companies reports (index up but your counter flat, remember to select the correct stock) and the monthly US economic reports. Analyst and economists think that tapering will only be kick off in 2014. What happen if say Bernanke next month announce tapering to be kick off in December? Something I need to watch out for. Lastly, any unforeseen things happen.
Happy trading. For STI to move, blue chip and STI counters need to move. Then follow by mid cap and lastly penny counters. Lately, Asiasons, Blumont and LionGold shocked everybody. Big boys, fund managers and retailers, all got burned. Avoid penny stock for the time been. Nevertheless, penny stock will be back again. (STI chart refer to my last Friday posted)
Tuesday 15 October 2013
Thursday 10 October 2013
Wednesday 9 October 2013
Trading Rules (LionGold)
Mid August I mentioned that LionGold was reaching its 25% centre of gravity. Any counter when it exit 20% CG, it need to pull back. However LionGold exited its max 30% CG. And there was no ticket for shortening inside the CFD. Therefore, it has only one direction - up. Nevertheless, if we analyst its financial statement, looking at its PE, ROE........that time the price was too far way out.
Small fish like me, should not chase after the price. We never know when the big fishes going to let go. We need to understand in the market, there are these 2 groups for traders. One group wants the price the go up, the other group look for opportunity to short. Penny stock can move so fast and so far is because of these 2 groups of traders When I trade penny stock, I always tell myself - don't be greed. And never chase after the price. I may win today but I may loss everything in just one trade if I do not follow the trading rule. Remember - All rules are laid down by investment and trading guru because they have lost enough. We should follow instead of thinking that we are always right.
Small fish like me, should not chase after the price. We never know when the big fishes going to let go. We need to understand in the market, there are these 2 groups for traders. One group wants the price the go up, the other group look for opportunity to short. Penny stock can move so fast and so far is because of these 2 groups of traders When I trade penny stock, I always tell myself - don't be greed. And never chase after the price. I may win today but I may loss everything in just one trade if I do not follow the trading rule. Remember - All rules are laid down by investment and trading guru because they have lost enough. We should follow instead of thinking that we are always right.
Tuesday 1 October 2013
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