Tuesday, March 20, 2012

The Trends have been right…Don’t lose out!

It been a couple of weeks since I last saw you and it was very, very good to see all of you again. To see the ballroom at Suntec City all filled up feels great and I feel so blessed to have all of you as friends. It seems that you have woken up and I feel glad to share my investment perspectives with you.

Here are some photos of the event that day before I go on with my post!

Quite a few of you could not make the event and have asked me to summarise what I said in an email. The reason why I invited you to the event is because I did not want to write long investment reports. I really hope that you can make the event next time as we spend a lot of money time and resources to do what we do.

Anyway, I shared with everyone what I thought will impact the property market and quite a few of you were quite amazed with my analysis. I believe what I observe and will put my money where my mouth is. There is so much liquidity in the market that its amazing. The Greek situation is inconsequential as they are irrelevant to the international scene. This is a rather cruel observation but think of when was the last time you actually used a Greek product? Exactly my point. So what is the fuss about?

They endanger the whole European banking system. The monetary czars have ring fenced the problem by giving the banks LTRO(cheap loans) to the tune of 1 trillion Euros. This is effectively giving liquidity. The Americans are still on QE mode. The Chinese political situation means that they will have to support the economy as the current leadership serves out their last year in power. Add the fact that this is an US election year and what do you have? The international economies simply cannot tank as too much is at stake.

With the international element removed, our real estate pricing rests solely on the shoulders of the Singapore government. They will not want to let prices sink as it certainly will not win them votes. All they have to do is to remove the cooling measures in stages. However, don’t bet on them letting prices go haywire, they do not want bubbles which makes good sense.

The problem we have is all this money and cheap financing but no where to place our money. A real interesting situation. I will keep you posted on where I think will make money. I leave you with photos we took at the event.

God Bless and all the best!

Your Friend,
Andy Ong