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!
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
20/03/12
