BOND THREAD

[Laguna]

Iskandar is like gold coast australia. A good place to retire, but it doesn't have much income generating industries. Wrong move for investment.

You can retire in Gold Coast with great life style, what can Iskandar offers you other than lower cost of living.

[hyenergix]

Iskandar is like gold coast australia. A good place to retire, but it doesn't have much income generating industries. Wrong move for investment.

You have a strong competitor right under your nose.

Business loans to Iskandar on the rise as more local SMEs expand overseas
http://www.channelnewsasia.com/news/...-a/632164.html

Singapore SMEs urged to 'come to Iskandar'
http://www.btinvest.com.sg/property/...e-to-iskandar/

Inside Iskandar: Rising demand for industrial space
http://www.straitstimes.com/the-big-...space-20130531

[indomie]

You have a strong competitor right under your nose.

Business loans to Iskandar on the rise as more local SMEs expand overseas
http://www.channelnewsasia.com/news/...-a/632164.html

Singapore SMEs urged to 'come to Iskandar'
http://www.btinvest.com.sg/property/...e-to-iskandar/

Inside Iskandar: Rising demand for industrial space
http://www.straitstimes.com/the-big-...space-20130531

Industrial space is not exactly desirable. The bosses don't want to live there.

[hyenergix]

Industrial space is not exactly desirable. The bosses don't want to live there.

Just TCSS only. Everyone has his preference. Most Singaporeans still prefer to stay in Singapore for retirement because they are not familiar with overseas and don't want to die in a foreign land.

[Arcachon]

Just TCSS only. Everyone has his preference. Most Singaporeans still prefer to stay in Singapore for retirement because they are not familiar with overseas and don't want to die in a foreign land.

Go and visit a nursing home and you will know why they prefer to stay in Singapore.

[focus]

Go and visit a nursing home and you will know why they prefer to stay in Singapore.

Here you go ... JALAN HULUBALANG 1, TAMAN UNGKU TUN AMINAH in Johor

[Werther]

Hello there

I am trying to find this REIT but I am not sure which is the one? My friend told me to look into this REIT called mapletree commercial china REIT... Which one is this ? Cos there are so many mapletree out there? Is it a good buy now at this level?

[Rosy]

Hello there

I am trying to find this REIT but I am not sure which is the one? My friend told me to look into this REIT called mapletree commercial china REIT... Which one is this ? Cos there are so many mapletree out there? Is it a good buy now at this level?

Mapletree GCC

Personally, i prefer MINT and MCT instead for mapletree family.

This website is quite useful.
http://reitdata.com/

[Werther]

Mapletree GCC

Personally, i prefer MINT and MCT instead for mapletree family.

This website is quite useful.
http://reitdata.com/

Rosy, thanks for yr quick response.

[Werther]

Hi rosy

What is MINT or MCT? Tks

[Rosy]

Hi rosy

What is MINT or MCT? Tks

http://www.mapletreeindustrialtrust.com/index.aspx

http://www.mapletreecommercialtrust.com/index.aspx

[Laguna]

Hello there

I am trying to find this REIT but I am not sure which is the one? My friend told me to look into this REIT called mapletree commercial china REIT... Which one is this ? Cos there are so many mapletree out there? Is it a good buy now at this level?

Do your own homework.
There's no one here can tell you is it a good level to buy now.

[starrynight]

Reuters:

- MAPLETREE LOGISTICS TRUST <MAPL.SI>
MapletreeLog Treasury Company Ltd, a wholly owned subsidiary
of the trust, has issued the 10th series of notes under its S$1
billion multicurrency medium term note programme. The note in an
aggregate principal amount of S$49 million bears a fixed
interest rate of 3.00 percent per annum and will mature on June
5, 2020. [ID:nSNZ7p9wzf]

[stl67]

Reuters:

- MAPLETREE LOGISTICS TRUST <MAPL.SI>
MapletreeLog Treasury Company Ltd, a wholly owned subsidiary
of the trust, has issued the 10th series of notes under its S$1
billion multicurrency medium term note programme. The note in an
aggregate principal amount of S$49 million bears a fixed
interest rate of 3.00 percent per annum and will mature on June
5, 2020. [ID:nSNZ7p9wzf]

Out of curiousity, normally who are the buyers for this kind of not @ 3% interest rate.

[Werther]

Reuters:

- MAPLETREE LOGISTICS TRUST <MAPL.SI>
MapletreeLog Treasury Company Ltd, a wholly owned subsidiary
of the trust, has issued the 10th series of notes under its S$1
billion multicurrency medium term note programme. The note in an
aggregate principal amount of S$49 million bears a fixed
interest rate of 3.00 percent per annum and will mature on June
5, 2020. [ID:nSNZ7p9wzf]

Hi starrynight, thanks for the info... So many new notes issued by reits recently... Kind of scary...what can happen if interest shoot up? Today REIT seems attractive ton buy some, but also may go lower in the afternoon, wish I hv crystal ball...

Cbsh, where are you, need yr advise.....

[starrynight]

What I understand is:

a. financial institutions, pension funds, etc. who want safe investments so they can meet their defined benefit obligations

b. leverage / cheap financing is available, so if you leverage up, the effective yield (assuming current financing rates) can be maybe 5%

Same thing for SGS bonds, etc.

Out of curiousity, normally who are the buyers for this kind of not @ 3% interest rate.

[starrynight]

Personally, I think a lot of the retail liquidity / appetite for corp bonds has been sated already, which is why the prices are now mostly around issue price.

REITs - I bought Cache and Cambridge last week during the dip, and sold on Tue for petrol money. Will buy back only if prices dip materially (e.g. Cambridge at 72c and Cache at 1.22).

Hi starrynight, thanks for the info... So many new notes issued by reits recently... Kind of scary...what can happen if interest shoot up? Today REIT seems attractive ton buy some, but also may go lower in the afternoon, wish I hv crystal ball...

Cbsh, where are you, need yr advise.....

[Laguna]

All the technical readings are so bearish now but markets are heavily oversold. Will pick up some today.

[princess_morbucks]

The FED are meeting soon.
June 18 to 19 , I think.
QE4 - they said they will not increase interest rate unless unemployment falls below 6.5% or inflation rises above 2.5%.

So far these criteria have not been met yet, so let's hope for QE5.

If that's the case, then quickly go buy some soon while it is down.

[cbsh38584]

Hi starrynight, thanks for the info... So many new notes issued by reits recently... Kind of scary...what can happen if interest shoot up? Today REIT seems attractive ton buy some, but also may go lower in the afternoon, wish I hv crystal ball...

Cbsh, where are you, need yr advise.....

I am not a expert to advise U what stock to buy. Only your banker is qualified. But I can let U know what to avoid the pitfalls in investments.

DO NOT KNOWING WHAT YOU WANT
What are U investing towards - Children education or retirement fund (good quality Perp bond ?) or income (more safety) or growth (less safety).

If you want an investment that produces consistent income, you have to understand that it will not grow as much. Quality Dividend blue chip stock like SPH , Singpost, Telco stocks etc/ Bond. Or bond fund (unit trust).

If you want an investment that grows, you have to be willing to accept less safety. Stock like Yoma (burma) or Rowsley (Iskander) , hyflux etc


TAKING RISK TOO LIGHTLY
SOME people take too much risk, others take none at all - both are mistakes. The amount of risk taken correlates to the level of returns - the higher the risk, the higher the returns.

1st state resource fund Launched in 2006 @$1. Went up $1.80 in 2007. Now 2013 back to $1.

UOB Global telcom unit trust Launched in 1999 @$1. Went up $2 in 2000. Now 2013 drops to 0.73.

Some of the good unit trust for long term. Prulink SG managed fund , Schroder Asian growth , Aberdeen pacify equity , AIA regional equity, 1st state dividend fund etc.

PLACING ALL EGGS IN ONE BASKET
YOU need to diversify and spread your investments so that you can limit your exposure to any single sector (like commodities , bond, Financial etc) or single country risk ( SG , HK , China , INDIA etc) or Single Currency risk (USD, AUD , NZ, SGD, YEN etc).

if you are invested in good short dated bonds, you dont really need to worry about interest rate risks if you plan to hold short dated bonds till maturity. Your returns are already locked the moment you purchase the bonds. So if you happy with the yield to maturity of current bonds, Don’t be bother of the price fluctuations.

Longer dated bonds are more risky than shorter dated bonds. More risk means higher potential returns. So its all depends on your risk tolerance.

Some bond or fixed income fund like
Eastspring Asian bond Fund,
Franklin Templeton IF Templeton Global Total Return Fund
UOBAM United Emerging Markets Bond Fund
etc etc etc.

Good quality dividend stocks is very important. It will ride through the crisis. Dividend Stocks Can Pay Investor’s for Being Patient.. it has Outperformed Non-Dividend Stocks over the Long Term.




CAVING IN TO PANIC - Too emotional.
DO NOT start panicking when there are short-term fluctuations. For your LT investments, you should not be overly alarmed when movements are experienced in the short term.

I bought Prulink SG managed fund in 1992 @1.00. Now the price is $3.70. It has gone through a major big crisis in 97/98 . 2001 Sept 11, SAR 2003 & 08/09 Lehman crisis. It Ave return est 6% since inception. But I sold off when it was 1.20 in the 1993. I did not stick to my long term plan.

I bought Schroder Asian growth fund in @$1 in 90s. During the 97/98 Asia financial crisis, I panic & sold off at 30% loss. The price is now 2.55 . It has ride through major crisis like the 97/98 Asia financial crisis, 2001 Sept 11 , Sar 2003 & 2008/09 Lehman crisis. It ave return since inception is est 9%.

LISTENING TO HEARSAY/HERD INVESTING/GREED
DO NOT fall prey to herd instinct. Avoid making big financial decisions based on hearsay. Buy when there is fear in the market.

　
When U make any investment, if your mind is focus on high return as 1st priority . Then U will be easily blind by the risk you are in. Majorities Retail investors see high return 1st priority when they buy share. They ignore the high risk. They like to play speculative penny stocks due to it low cost & high liquidity with High profit.

Long term, they will suffer through big losses due to their weak emotional trading behavior. Too painful to cut loss. Hesitate to cut loss at the initial stage. Hesitation can be very costly.


Patience- most important, but most difficult, virtue in investing.

One of the biggest weakness investors have is that they believe that the stock market is a way to get rich quick. In other words, investors lack of patience.

Investors with longer-term expectations were also greatly affected by the major correction in 2008, but if they were confident that they bought sound investments, they would have kept them and now as the market has recovered strongly since then, they would have now recovered all or almost all of their paper losses

Patience is one of the most important qualities that an investor needs. It is true that it is not always easy to watch as one of our stocks crumble , all the more reason why patience is essential for a successful investor.

Finally, pls DO NOT assume that once you have your plans and portfolio in place, you do not have to review or re-balance it. You need to monitor your investments regularly to capitalize on market changes and movements.


To be a successful investor
The learning process is long and treacherous, involving one to lose to learn. Only a few people really start off earning big money first. The losing part makes the person a better player in the future. Only when U hv gone through 1997/98 & 2008/09 big crisis, then you will realize GREED & herd instinct investing will bring disaster to you .

　




rdgs,
Vic

[princess_morbucks]

Thanks Vic for the detailed analysis!
I have read it and will re read it again and again to remind myself of what you have mentioned.
It is full of golden wisdom.

[Laguna]

Thanks Vic for sharing.
The other I want to share is the exit strategy.
Most people know take profit fast and sit on bad investment. Average down the losing counters instead of buying good ones

[Werther]

Hi Cbsh

Thank you for coming in and giving your wise advice.

I bot some shares last few days and they hv keep coming down, I give up averaging....sigh....

I also bot reits for dividends, just hedge the $$ due to inflation. My relative strongly advise to put into reits cos her dividend she collect yearly is about $300k... Well, Wonder how much she plonk in to achieve that sort of dividends...

Got some cash on hand, buy shares, lose money.... Aiyo...

Property cannot buy...how how

[Allthepies]

Are there any short term safe bonds (6months to 2years) that give a yield of about 4%?

[Allthepies]

Hi Cbsh

Thank you for coming in and giving your wise advice.

I bot some shares last few days and they hv keep coming down, I give up averaging....sigh....

I also bot reits for dividends, just hedge the $$ due to inflation. My relative strongly advise to put into reits cos her dividend she collect yearly is about $300k... Well, Wonder how much she plonk in to achieve that sort of dividends...

Got some cash on hand, buy shares, lose money.... Aiyo...

Property cannot buy...how how

Wow 3millions in Reits? with this amount property is a safer bet.

[princess_morbucks]

My relative strongly advise to put into reits cos her dividend she collect yearly is about $300k...

OMG!
I hope that's her spare money.
Reits in general generate an interest about 5% this year as the price have increased compared to 2011 and 2012.
Reits is good when interest rates are low.
Look how badly they have fallen with the recent possiblity of QE tapering.

But seems like QE is going to continue .

http://www.cnbc.com/id/100798248

[Werther]

Wow 3millions in Reits? with this amount property is a safer bet.

I am not sure what is the capital in order to generate such dividends...but surely $3m property cant get rental of $30k a month!

[princess_morbucks]

I am not sure what is the capital in order to generate such dividends...but surely $3m property cant get rental of $30k a month!

If yearly collect $300K, mean......
Should be about $6mil, assuming the dividend yield is 5%.
But if she had bought it few years ago, the dividend yield was 7-8 %, so her capital would be about $3.75 mil.

[Rosy]

I am waiting to accumulate some high yield bond funds. Waiting for the yield to increase to 8-10% from current 5-8%.

I do not believe a spike of interest rate will happen. Hoping for more panic selling of high yield funds.

[Rosy]

Reits is a good alternative way for those who do not like to deal with tenants. Save alot of hassle on finding tenants, filing rental income tax etc.

However, one can leverage on cheap loans to accumulate physical properties.

I would say reits are more suitable for older folks or people with low initial capital outlay. Prices still high imo.