Monday, October 12, 2009

Warning! I am not comfortable with the property market!

All the exuberance is there. The property soap opera saga in Singapore is rather interesting. However, I am simply not comfortable with the whole residential property situation. The developers are trying to offload as much as possible. Nearly all the property companies’ charts are pointing to a ‘head and shoulders’ trend with a downside bias. We seem to be in a world of our own when it comes to the economic situation.

The US and Europe is still suffering, their consumption demand simply dwarfs what Asian consumers are buying. Everyone expects China to take the lead, but there is so much that they can do. The immense liquidity pumped in to stabilize world economies is like a life sustaining machine. Someone better figure out a good way to keep the patient alive after taking him off. All this points to one conclusion, know what you are investing in. If you are caught in a liquidity trap, where you are over-invested and cost of funds move up, this can be deadly. I am sounding unusually pessimistic but there is always light at the end of the rainbow.

So far all my indicators have worked rather well but I am indeed caught in a huge situation trying to ascertain where to place my money for year 2010. Anyway, I will update everyone at our annual ‘Asian Titan Trends’ event beginning next year. For those of you who are not familiar, this is the event where I share with everyone my investment strategies for the New year. This free event only for past participants has always attracted a full house. I have limited capacity to 200 hundred this year and invitation will go out next month, so book your seats early. Till then, all the best for your financial ventures.

Your Friend,
Andy Ong