Investing allows us to make money by compounding

25 February 2017

Dear Fellow Investor,

Is the Singapore property market collapsing ? Have the buyers gone on strike ?  The photo below shows a crowd of eager buyers on 18/ 19 Feb 2017 waiting to take up units at SGD 1350/ sq foot.

                                            

Overwhelming crowd at Grandeur Park preview

By Lin Zhiqin / The Edge Property | February 22, 2017 9:55 AM MYT


10,000 people attended the preview event of Grandeur Park Residences over the weekend of Feb 18 to 19.

The 99-year leasehold condo, by CEL Development, the property development arm of listed construction group Chip Eng Seng Corp, is located next to the Tanah Merah MRT station at the corner of New Upper Changi Road and Bedok South Avenue 3.

"We expected a good response, but it's overwhelming,” said Chng Chee Beow, CEL Development’s executive director. He reckons the response is owing to the price quantum and pent-up demand as there were no new launches in the area for the past three years.



This same story is happening in Hong Kong, Vietnam, Thailand and other Asian countries. Malaysia ?



I just read the latest Singapore Edge and their analysts are recommending property shares including Capital Land. The Malaysian edge is also recommending property shares.



Yesterday morning, I attended a briefing by UOB Kay Hian . Speakers included Julia Goh, a UOB economist, and she was recommending property developers and  construction  stocks in Malaysia. Reasons  included the possibility of an early general election in which liquidity will flow into the economy and into stocks.



In the KLSE the strongest sectors include construction, property and technology but they are trading near their highs. Should we jump in now. Yes and no.



If you have a very disciplined method to find smart money buying and you have an exit plan the answer is yes. Why not for a quick trade?



If you simply buy because your friends are buying that is a recipe  for disaster and heavy losses. Most of the crowd of perhaps 500 today who attended the briefing  will do just that. They will buy because the Star/ their remeiser/ their friends/ the grab car driver  recommended to buy.  



On the other hand, if you listened to Martin  and Darren who were promoting the IVSA charting service you would have the odds in your favour as their program selects shares with the odds in your favour and it tells you exactly the price to buy or sell. 



Those traders who have  faith in IVSA and stepped  up and paid the fee today have a trading edge and the chance to earn handsome profits.  



If you are an investor and take a longer time horizon we have to look off the radar screen and away from the broker hype. We need to carefully access the financials, management,  valuation,  history of earnings and cash flow. 



Investing allows us to make money by compounding. This is my method and I use the weekly charts with IVSA to confirm a low risk entry.   I have been buying these sorts of shares for my clients. 



Evidence suggests we are close to the bottom of the property cycle at least in Singapore and Hong Kong. In Malaysia loan and deposit growth is picking up and that is a positive sign.



Invest well and grow your wealth,
Bill

“Green Turtles in the Rays” by French photographer Greg Lecoeur, one of the winners in the “Portrait” category of the Underwater Photographer of the Year 2017 contest. Lecoeur commented “During a diving trip to Tenerife, I came across these green turtles. It was early morning and the sunbeams pierced the surface. After a little while, the turtles were circling around us and it was a great opportunity to photograph them.”