istock

Wednesday, November 24, 2010

The Market Ahead!

Hi guys, if you had read the Business Times today, the headlines would have read Chinese buyers are getting aggressive. My sources tell me that they will be buying more stuff here. Watch out for them as I had indicated in my blog entry earlier this year. Their appetite for risk is enormous and the tremendous global liquidity means they have capacity to buy.

With the Chinese government clamping down on their home ground and Hong Kong adopting rather drastic measures, well Singapore seems like rather cheap to them. The cooling measures adopted by the Singapore government seems to have limited impact as transactions are still very healthy. So what holds for the future?

Liquidity has to find a home and it seems like Asia is the place to be. The global balance of economic power seems to favour this part of the world as China seeks to firm up its global voice. Fund flows are coming into this part of the world. However, you will need to balance out the fact that if European and US assets gets too cheap, this hot money can easily exit as well.

For now, I am rather bullish for the next 6 months as there are so many parties scrambling to buy assets. The Korean attacks, Irish bailout, and other incidents seems to be rather minor blips. The assets to be looking at right now seems to be prime landed properties and commercial property. For condos, the only asset class I like is what I shared with you in class.

Till the next blog, Take care!

Your Friend,
Andy Ong
24/11/10