Monday 31 December 2012
Happy New Year !!! 2013 here we come.....
Thursday 20 December 2012
20Dec2012 -REITS review
Well, tomorrow will be Doomsday .....21Dec2012 according to the Mayan Calender. We are 1.5 hours away for this date, and time is ticking. Hmm....not many believe this but more people is believing there will be a blackout for 3 days, the effect of this day. Well, if tomorrow is the last day, I still got a lot of things in my life that I haven't try or enjoy, haha. No choice, tomorrow still got to work.
Lets see, CMMT have been going short term down trend for 7 weeks, and today seems like a rebound and broke the immediate downtrend line with some volume. Seeing the bullish divergence show by MACD histo, she strongly indicates that she will climb to her 1st resistance. This resistance is quite a strong one, she really need a good volume especially those big fish to push her through before she able to re-challenge her previous intraday high of 1.98.
Lets see how she goes. Btw today is an up day for Sunreit and IGBReits also. Sunreit broke out from her Symmetrical triangle with a good volume. Stochastic still climbing (Smooth %D yet to touch overbought). MACD histo turn Green. MACD has bullish crossover the centre line.
For IGBReit, nothing much exciting. The only positive thing is 5MA has stayed above 20MA. When you compare this reit with the two above, she really disappoint in terms of performance since her IPO launch. Lets see, she will show some strength in coming weeks. I believe if she able to break 1.35 convincingly with good volume, she will propel with a "V" shape as like those good Fundamentals IPOs. Time will tell.
Lets see, CMMT have been going short term down trend for 7 weeks, and today seems like a rebound and broke the immediate downtrend line with some volume. Seeing the bullish divergence show by MACD histo, she strongly indicates that she will climb to her 1st resistance. This resistance is quite a strong one, she really need a good volume especially those big fish to push her through before she able to re-challenge her previous intraday high of 1.98.
Lets see how she goes. Btw today is an up day for Sunreit and IGBReits also. Sunreit broke out from her Symmetrical triangle with a good volume. Stochastic still climbing (Smooth %D yet to touch overbought). MACD histo turn Green. MACD has bullish crossover the centre line.
For IGBReit, nothing much exciting. The only positive thing is 5MA has stayed above 20MA. When you compare this reit with the two above, she really disappoint in terms of performance since her IPO launch. Lets see, she will show some strength in coming weeks. I believe if she able to break 1.35 convincingly with good volume, she will propel with a "V" shape as like those good Fundamentals IPOs. Time will tell.
Tuesday 11 December 2012
What would you do after you strike your first bucket of gold ?
Smart People start to use money to earn more money after striking their first bucket of gold by doing business. Some of them get richer but some of them back to square one.
Lets put up a scenerio for discussion,
You just strike a Toto and the prize is RM3.5 million. Wow ! The whole night you would not able to sleep. Lets begin, you might use RM500k for giving yourself a treat, example a luxury car, a new house, a lot of electronic gadgets that you always dream on. Then you left with RM3 million. Lets talk business, how you want to let the money grow to ensure you have enough money to live the rest of of life by quiting your current pressure cooker job ! Imagine your family income (include your wife) is RM7.5k per month ( RM90k annually). Here are a few options
1) Put all the money into Fix Deposit and earn 3% annually = RM90k .
Pro : Your money is 100% safe and consistently you & your wife can quit your jobs and have RM90k to spend annually which you can maintain your current life style
Con : Year by year, there is inflation of around 4~5%, thus your spending power getting lesser and lesser, which you may eat into your capital and you may have nothing much left over for your children by the time you leave this world.
2) Put all the money into a few Dividend stocks = (around 6% for REITS would be good) = RM180k.
Pro : You can use RM90k for the 1st few year and re-invest back the RM90k into the dividend stocks, with this your capital will keep growing and this will definitely cover the inflation and also indulge into some extra luxury items or tours.
Con : Your capital may not guarantee to maintain if the stocks you purchase keep dropping in price. So, the annual income may also fluctuate though you still get RM90k annually if your stock price drop to half price from your purchase price.
3) Put RM1 million into FD (interest RM30k), RM1 million into dividend stocks (dividend RM60k), RM1 million to trade ( assume you have acquire the necessary TA skill needed to trade), well target 15% annually consistently . So total annual income would be RM240k.
Pro : You can upgrade your lifestyle and also grow richer than your current wealth with this combination as you can use the extra money earn that you did not finish spending for trading capital.
Cons : If you lose 10% for a particular year, then one have to eat into his RM3 million capital as the RM90k earn from FD & dividend is not enough to cover the 10% lost, not to say the daily expenses.
Personally, I would opt for option 3, test our for say 5 years, if the growth is lesser than option 2, then I will switch to option 2 .
So, which one would you choose ? Lets share your view ;)
Lets put up a scenerio for discussion,
You just strike a Toto and the prize is RM3.5 million. Wow ! The whole night you would not able to sleep. Lets begin, you might use RM500k for giving yourself a treat, example a luxury car, a new house, a lot of electronic gadgets that you always dream on. Then you left with RM3 million. Lets talk business, how you want to let the money grow to ensure you have enough money to live the rest of of life by quiting your current pressure cooker job ! Imagine your family income (include your wife) is RM7.5k per month ( RM90k annually). Here are a few options
1) Put all the money into Fix Deposit and earn 3% annually = RM90k .
Pro : Your money is 100% safe and consistently you & your wife can quit your jobs and have RM90k to spend annually which you can maintain your current life style
Con : Year by year, there is inflation of around 4~5%, thus your spending power getting lesser and lesser, which you may eat into your capital and you may have nothing much left over for your children by the time you leave this world.
2) Put all the money into a few Dividend stocks = (around 6% for REITS would be good) = RM180k.
Pro : You can use RM90k for the 1st few year and re-invest back the RM90k into the dividend stocks, with this your capital will keep growing and this will definitely cover the inflation and also indulge into some extra luxury items or tours.
Con : Your capital may not guarantee to maintain if the stocks you purchase keep dropping in price. So, the annual income may also fluctuate though you still get RM90k annually if your stock price drop to half price from your purchase price.
3) Put RM1 million into FD (interest RM30k), RM1 million into dividend stocks (dividend RM60k), RM1 million to trade ( assume you have acquire the necessary TA skill needed to trade), well target 15% annually consistently . So total annual income would be RM240k.
Pro : You can upgrade your lifestyle and also grow richer than your current wealth with this combination as you can use the extra money earn that you did not finish spending for trading capital.
Cons : If you lose 10% for a particular year, then one have to eat into his RM3 million capital as the RM90k earn from FD & dividend is not enough to cover the 10% lost, not to say the daily expenses.
Personally, I would opt for option 3, test our for say 5 years, if the growth is lesser than option 2, then I will switch to option 2 .
So, which one would you choose ? Lets share your view ;)
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