Is that some how I know there ain’t a local equities overpriced. Far from it. Funds are not enamored with the country’s equity. I don’t hear a lot of friends and acquaintances being additionally interested in it.
What is particular telling is the state of Singapore equities. Since the past 6 years, there don’t seem to be some mid cap companies like Tat Hong, OSIM, Venture or Hyflux, taking leadership to become a bigger component of the Singapore market. When you look at the IPOs, there is a distinct lack of quality as well.
In fact, most of the new listings are either commodity players , REITs and business trusts or property companies.
This country seem to be in some sort of a funk. That don’t seem to be how a first world developed nation seem to be going.
To add to that, the friends who owns a HDB, who hasn’t finish paying the housing loan, intends to get a second dwelling so as to rent out the HDB.
Would there be some unhealthy problems if the majority of the wealth is all parked in properties and not in diversified wealth vehicles o businesses?
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hyom
Sunday 9th of March 2014
I also have some concerns. Recent years have seen good companies being delisted from SGX at relatively cheap valuations. How about IPOs? Several of them are not even companies. They are mostly Trusts - REITS or Business trusts. The prosperity of REITs may be coming at an expense to Singapore businesses in the form of rising rental cost. Is this healthy? I would rather see more tech companies booming because the social value they create is much greater. Wealth created from rising property prices benefit mainly the rich. Not much social value is created compared to wealth created by real businesses, particularly tech companies.
If there's going to be an asset bubble, I would rather have a tech bubble than a property bubble. At least over-investment in a useful asset will bring benefits later. The dot-com craze gave us the Internet and cheap broadband. What did the bubble in property and structured products give us? Painful rising cost of living and toxic products like Lehman Brothers Mini-bonds.
By the way, I am biased towards tech businesses because I am an engineer.
Kyith
Sunday 9th of March 2014
Hi Hyom, hope you are doing well in your job. I agree. Said it a few times that if we have an Eriksson or Siemans, it will let the engineers have something to look forward to instead of work in cost centers haha.
BlueKelah
Thursday 6th of March 2014
past few years the booming asset was property so obviously property and property related stocks got speculated on and pumped up. Its just a cycle, once property goes down like it is now, all that money from property sales has to be channeled into some other asset class, could be gold, could be equities who knows? :D
Kyith
Thursday 6th of March 2014
I'm not saying about equities but about business building. There seem to be such a lack here you wonder is it because of the lack of infrastructure to support or that people are not driven to start at all
Kyith
Thursday 6th of March 2014
I'm not saying about equities but about business building. There seem to be such a lack here you wonder is it because of the lack of infrastructure to support or that people are not driven to start at all
Kyith
Thursday 6th of March 2014
I'm not saying about equities but about business building. There seem to be such a lack here you wonder is it because of the lack of infrastructure to support or that people are not driven to start at all
Kyith
Thursday 6th of March 2014
I'm not saying about equities but about business building. There seem to be such a lack here you wonder is it because of the lack of infrastructure to support or that people are not driven to start at all
Kyith
Thursday 6th of March 2014
I'm not saying about equities but about business building. There seem to be such a lack here you wonder is it because of the lack of infrastructure to support or that people are not driven to start at all
genmumbles
Tuesday 4th of March 2014
Your hunch/fear isn't unfounded. I remember the "living off the fat of the land" rhetoric coming up during the 6.9m population debate too.
Eric
Tuesday 4th of March 2014
Our local mkt isn't really a very big mkt n volume is decreasing every year. Only good for quality dividend companies
Raymond Thor
Monday 3rd of March 2014
That is also what I worry. SGX seems to be rather decoupled in movement from global markets. Global players don't seem to be parking funds in SGX as well.
My money is still with SGX stocks, but preference on quality companies that are not simply SG focused.