Archive for April, 2009
Why do we see stocks picking up while RECESSION is still all over the news?
Posted by: admin in General, Unit Trust on April 27th, 2009
Why does the stocks sky-dived when the economy was going strong, and why lately does it seems to defy gravity when it’s still doom and gloom in the economy?
An Insider understands that stocks movement is the first indicator of the direction of economy. In the process, it also dictates the fall of the property market as we are experiencing right now.
Stocks trend first indicator of the economy (source).
Unit trust investors have seen an average spike of 30% return back then when the world recovers from the Asian Financial crisis. Though no-one truly knows when will be the start of the recovery until it is too late, we have seen a sustained growth over 6-8 months after the Asian Financial Crisis was over.
Question is, will you be one of them who will catch the wave?
The Secrets of Investing in Unit Trust
Posted by: admin in Unit Trust on April 9th, 2009
There are 3 common strategies used in unit trust investment.
1. Dollar Cost Averaging
Regularly invest a fix amount in a unit trust fund regardless of market trend is called the Dollar Cost Averaging strategy. The actual market performance is fluctuating. When the equity market is high, you buy fewer units with the same amount. When the market is low, you buy more units. For long term, you will get much more unit in the lower price range.
2. Portfolio Re-balancing
Portfolio re-balancing is the process of bringing the different asset classes back into proper relationship following a significant change in one or more. More simply stated, it is returning your portfolio to the proper mix of stocks, bonds and cash when they no longer conform to your plan.
Example:
You start investing 50% in equity and 50% in fixed income fund.
1 year later, the equity rises and now your portfolio consists of 80% equity and 20% fixed income fund. To re-balance your portfolio, you should sell 30% of your total fund in equity and invest it in fixed income fund so that the portfolio is maintained. This is the simple principle of buying low, and selling high.
3. Switching
Switching will lock in the gain you made in your unit trust investment. When you are making profit from an equity fund, you can switch it to some lower risk fund to lock the gain instead of selling it for cash. When the market turns low, you can switch it back to equity fund.
Rooms for rent (immediate!)
I have a business deal with CityHomes, putting this up for a client:
Type of Property : Terraced House
No. of Room : 1 Master Bedroom, 1 Common Room
Property Location : Bedok
Property Address : 6 Wiltshire Road
Rental Asking : SGD$950 Master, SGD$750 Common
Co-broke : OK
View the images here (opens in new window).
Stocks losing momentum in falling?
Posted by: admin in Unit Trust on April 3rd, 2009
Source: Dollardex
Lately, I observe that the downtrend is starting to lose momentum. I’m beginning to see some positive returns in some of my account holders’ portfolio, especially them who opt into DWS China and DWS Noor Precious Metal. By chance or not, the gainers among these account holders are on the IFAST RSP account. RSP is short for Regular Savings Plan. It’s a great plan if you would like a potentially higher return than your average fixed deposit but not taking too much risk. More about RSP in the future articles.
Summary of Customers' Profit & Loss (Adviser's view)
Oh, if you’re wondering what’s Pru Global Balanced Fund doing up there, it’s one of the current funds that I’m looking into. You may want to switch into that if you’re currently fully invested in Bonds fund.