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Have You Been Nudged Today ?

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Have you been nudged?(  Link ) from BBC.com)


<In probably the most well-known example, spillage around the toilet, an age old problem for at least half of the human race, was cut by -80% using an ingeniously simple  intervention.>


The 2017 Nobel Prize in Economics was awarded to Professor Richard Thaler for his contributions to behavioural economics. Prof Thaler's work essentially questions the economic dogma of the so-called "rational man" as defined by classical economic theory, who makes decisions based on weighing the additional benefits against the additional costs of every single option.

Animal Spirit : We are all subject to irrationality

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John Maynard Keynes in 1933 Animal spirits is the term John Maynard Keynes used in his 1936 book The General Theory of Employment, Interest and Money to describe the instinctsproclivities and emotions that ostensibly influence and guide human behavior, and which can be measured in terms of, for example, consumer confidence. It has since been argued that trust is also included in or produced by "animal spirits".
Even apart from the instability due to speculation, there is the instability due to the characteristic of human nature that a large proportion of our positive activities depend on spontaneous optimism rather than mathematical expectations, whether moral or hedonistic or economic.  Most, probably, of our decisions to do something positive, the full consequences of which will be drawn out over many days to come, can only be taken as the result of animal spirits—a spontaneous urge to action rather than inaction, and not as the outcome of a weighted average of quantitativ…

Patience Is Your Biggest Investment Asset

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One of my reader ask me what am I doing since market has gone down by more than -10% from early May, am I buying or selling ? My answer is "No" , I don’t do any major adjustment on my portfolio , except nimble a little bit here and there with the dividend I received. Basically, my war-chest remained same in term of percentage in my portfolio.
For me, I don’t think it is compelling for me to do major adjustment on my portfolio at this point of time , although the STI Index has corrected by more than -10%, but it sitting just at long term mean level.

What happen to Genco while SP Power is making close to 1 Billion per year ?

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Disclaimer : I am a Hyflux N2H ( 6% CPS ) holder , my view may carry some biases towards company I have vested. As I said in my previous blog post , we shouldn't blame anyone for lost incurred in our investment except ourselves.
Electricity tariffs to rise by 6.9% for July-September period( from channelnewsasia.com - 29th June 2018)

This is what caught my attention and I think this will further contribute to better bottom line of SP power ….. Yes , SP Power is making close to $900 mil per year( Base Annual Report from SP Power – here ) and all the Genco are bleeding and in red of more than -$357 Mil in 2016 ( I’m sure it will be much more than this figure in 2017 and some estimated it could be close to $1 Bil )





While :
“Singapore's power generation sector has a total capacity of 13,350 megawatts (MW). Peak demand, however, averaged only 7,000 MW in the year to March 2017, leaving a spare capacity of 48 per cent in the system.” Quote from Businesstimes.com.sg , 09 Apr 2017.
Economi…

What to buy ?

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Market looks more volatile in June and STI was down by almost -5% since beginning of June , there may be some truth about "Sell in may and go away"...some might have started to deploy their war-chest to buy stocks listed in their "watch list" which have hit their so call "target price".

Ops ! I am not going to talk about buying stocks in current market condition here today, which I also think that there might be some "value " started to appear but definitely not in "crisis mode" that offer "great bargain " . What I would like write about today is " Buy Experiences ! "

You may notice that I didn't blog much in June as we got to spend more time with kids since it's school holidays. We have our staycationed at one of the hotel resort in JB and also some other activities in Singapore like "rock climbing " , "Bounce Singapore " , "movie time "etc...of course went back to my hometown…

OBike oh OBike : Where is the refund of my deposit ?

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Saw this blog post from my friend ( SG BugetBabe ) this morning :
Has Obike taken your $49 deposit without informing you?



It remind me that I have actually requested the refund of my deposit from OBike few months back since I have switched to the other bike sharing apps which does not require any deposit.
I guess most of us will assume that the refund will be credited back to our CC in days or weeks times. Since it was just $49 and would opine that most people will just take things for granted that money shall be credited automatically to our CC , but in this case , I was wrong after checking all my previous CC statement.
I try to login to their Facebook( here) and found out that I am not the only one facing such delayed ...many have since left their message .....
I have since write in to OBike for further clarification and pending their reply... if you have requested the refund of your deposit from OBike , would suggest you please do check your CC statement if it has really been cred…

2nd Qtr 2018 ; Dividend and Portfolio Update

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Market has been in a much more volatile situation in 2018 as compare to 2017 and the latest political & economic issues face by Italy is making the market looks more risky. Italy has been a problematic state among EU countries for many years. It ranks among the countries with the largest debt—around 2.3 trillion euros—and has been facing a double-digit unemployment rate since 2012.
Italy could be the next Greece — only much worsefrom CNBC.com
Growing tension in Korean Peninsula and potential trade war between US – China and US – Europe , no doubt has contributed to recent market volatility.

Too Greedy about Yield : Hyflux 6% CPS

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Yes, this has been one of the hottest topic recently “ Hyflux applies for court supervision to re-organize liabilities, businesses ( here ). Thousands of investors will be affected by this sudden collapsed of Hyflux , yes , including Me. Nobody know how things will turn out eventually under this so called “ debt’s restructuring “ but I think for sure it is not good for ordinary or preference shareholders who’s typically rank lower in term of debt’s seniority as compared to secured bank loans. Hundreds of millions of bond and perps securities holders will also be affected.
In anticipating for the worst, I will need to write off  $114,675.44 from my books as I am holding 1270 units of their 6% CPS .
Total cost = $117,816.81 - $3141.37 ( interest received on 25th April)
Enough warning been given by analysts , bloggers on the problems of Hyflux in servicing their loans ( including bonds/ perps / CPS ) due to company’s inability to generate enough cash flow to pay for the interest. Therefo…

Renounceable vs Non-renounceable Rights Issue ( Edited )

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< Edited : 17 May 2018>
Wow ! another Non-renounceable Preferential Offering from Manulife US REIT ( here)

"The Issue Price of US$0.865 per New Unit represents a discount of approximately 7.9% to the volume weighted average price of US$0.9391 per Unit for trades in the Units done on Singapore Exchange Securities Trading Limited (the “SGX-ST”) for the full Market Day on 15 May 2018."
I still prefer the previous rights of "UNDERWRITTEN AND RENOUNCEABLE RIGHTS ISSUE , a 21.6% discount " ...but it seems that the " Non-Renounceable Rights " will be the new trend now. ...

< First published : 14 May 2018 >

Recently, it seems that more and more companies are choosing to issue “Non-renounceable Rights” in equity raising activities instead of “Renounceable Rights “.
My friend “ B “from “ A Path to Forever Financial Freedom (3Fs) had just written a good blog post in explaining how to take advantage and possibility of making some “profit or lowering your …

Fear of Rising Interest Rates

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Interest rates increase was really a hot topic in last two weeks since US 10 Years Treasury Note hits above 3%for first time since 2014. Market also react negatively with full of comments on interest risk due to this increase.
10-year Treasury yield hits 3% for first time since 2014from CNN Money.com
Why everyone is stressing about the 10-year Treasury yieldfrom CNN Money.com
“Auto loans, home mortgages, and other loans are tied to the benchmark 10-year yield. Investors fear that higher interest rates could start to eat into corporate profits and also signal that more inflation is coming.” This is why everyone is paying so much attention on the 10 years Treasury Note.
Some even talking about “ Inverted Yield Curve “ ….

My Realized Loss

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“Soon after I bought the stock recommended by my broker, its value dropped by half so I decided to cut loss “, sounds familiar right. While investing in financial markets over the long-term is an excellent path to wealth, it’s not unusual to experience occasional losses as investment values goes up and down, depending on market cycles.
Every investors ever incur loss in our investment during the journey, the point is, do you keep track of your“realized gain/loss” on all your stocks’ transaction? Yes, I know , nobody like to mention or talk about their losses made in stocks as the “Prospect Theory“ suggested in one of the famous behaviors bias i.e “Loss Aversion”

STE Smart Beta : Not so Smart !

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It has been quite sometimes I never update the performance of my “STE Smart Beta “ since last one in Aug 2017 (here ).   You may also want to know what is “ Smart Beta “ (here ) , for those who are not so familiar with this investment / financial " jargon".

Here is the latest update :

Buy Low, Sell High ! How ?

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I hope stock market will crash tomorrow !!
Hey ! wait a minute (ちょっと待って) , don’t throw rotten eggs or curse at me !! J


Here is my story ….
Every stock market investor knows the old adage: Buy low, sell high. We often hear this in investment courses or seminars we had attended, even in financial blogsphere. We talked about “ Price is what you pay ,value is what you get “ , we wanted to buy cheap at best “bargain “ and high M.O.S ( margin of safety ).
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