I would first like to apologize for not posting much this week. Most likely I would talk about 1 or 2 companies I notice this 2 weeks in following posts. I hope it interest some of you to give your honest feedbacks.
Japan Earthquake and Tsunami
Was on course when we got the news that a magnitude 8.9 earthquake hit Japan. The first thought on my mind is 8.9! The strength of destruction of earthquake goes up exponentially. So when it approaches 9 you know its big.
The second thought was the destruction that I witness when I was young of the Kobe earthquake. That was a really terrible time.
This morning I put the people of Japan in my thoughts when I pray in the morning. I feel for the folks that lost the family in the quake and their homes.
Profiteering from the earthquake
The investor mindset sets in to analyze what this could entail to the investing world.
For Singapore Stocks, stocks that are directly affected are Saizen REIT and Mapletree Logistics Trust, PLife REIT, Global Logistics Trust.
These are property trusts or stocks and such a event is their worst case scenario.
As investors we will have to
- Wait for assessment of damage
- The kind of insurance coverage on the properties
For sure, there would be insurance payouts but there would be losses. The loss of income will unsettle these stocks
This event together with recent negative events such as high oil prices have unsettle the stock market.
At Investment Moats, we do not use fundamental analysis only to view positive or negative direction. Rather, price momentum and money fund flows play a very important part.
It is still good long term wise, but we see a lot of headwinds in the index. We are at a point where it is likely to correct 20% or make a final move up.
Calling for the market to fall further
The one negative thing about the act of making money is to hear people say that they wish the market to fall further.
The market is there to serve us as an exchange to purchase and sell stakes. Markets go up and down and its not something small folks like us can control.
But what we can control are our thoughts. Having evil thoughts, not empathizing about your friends or other people that lost vast amounts of money in the situation would only come to a disaster in the future for oneself.
I come to realize that the consistent thought about money, the need of it, how to make more of it, brings a lot of detrimental things to your health, family and family fortunes.
Having good thoughts, accumulating money the right way, making effective use of it and providing for society would create a domino effect that eventually brings happiness and success.
Kyith is the Owner and Sole Writer behind Investment Moats. Readers tune in to Investment Moats to learn and build stronger, firmer wealth foundations, how to have a Passive investment strategy, know more about investing in REITs and the nuts and bolts of Active Investing.
Readers also follow Kyith to learn how to plan well for Financial Security and Financial Independence.
Kyith worked as an IT operations engineer from 2004 to 2019. Currently, he works as a Senior Solutions Specialist in Fee-only Wealth Advisory firm Providend.
You can view Kyith's current portfolio here, which uses his Free Google Stock Portfolio Tracker.
His investment broker of choice is Interactive Brokers, which allows him to invest in securities from different exchanges all over the world, at very low commission rates, without custodian fees, near spot currency rates.
You can read more about Kyith here.
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Jet
Thursday 17th of March 2011
Hi Drizzt,
My evil thoughts creep up and calling for the market to fall further..
Then I realize there are REAL people suffering out there..
So I totally agree "accumulating money the right way, making effective use of it and providing for society would create a domino effect that eventually brings happiness and success."
The world need more people like you !!
Temperament
Monday 14th of March 2011
Hi Drizzt,
"even though i aim to have 500k by 40 years i feel it is not enough for me to semi retire as well." Yes, definitely not enough.
I always tell my son unless you are running your own private business,or be a professional like doctors, lawyers, architects who can have their own practices or you can be one of the ordinary workers who most probably have to work as long as you can and still unable to reach a financially free stage in your whole(later)life. Even if you are a CEO of a Company you can get retrench/replace without warning. So the only hope for an ordinary worker is to learn Money Management and Investment in order to be financially free one day. If not then work until you cannot work. That's my take of life experience. And I was an ordinary worker you know who believes in lifetime investment is one way of reaching financial freedom & leaving a legacy behind for your family. Because now I am 63, I know.
Drizzt
Tuesday 15th of March 2011
Thanks for the advice Temperament. Even though we can get retrench but i feel we can earn much more "dividends" by getting pay increment.
That is not to say money management is not important. without it, a person will still be net negative after disposable income.
kelvin
Monday 14th of March 2011
I stumbled to your blog recently -- and among all the posts, this is worthy of mention and compliment. I had the same thoughts on Friday evening - about what positions we can take on Monday in this situation. And that was there my conscience took over, and the images of my friends and colleague in Japan jolt me out of my seat.
You have my hat, mate. We need more people like you.
Drizzt
Tuesday 15th of March 2011
Hi kelvin, its difficult for an investor to pull himself together to think what should be ethically correct. I am still learning from this. Money naturally breeds evil more than goodness
temperament
Monday 14th of March 2011
Hi Drizzt,
I am more a Chinese film but i don't mind English film too.
And no I don't think you are chasing the wrong thing as long as you have to work for your living. Remember, all workers(regardless of position) face retrenchment.Unless you run your own business you have no final say. The main question to ask is do we have a choice not to be in the rat race? If we don't have, we better enjoy being a passive business man. WE(my wife and I) are financially free now if we do not want to leave behind any "legacy" for my only son(21 year-old). But I still enjoy the in & out of investments so most probably I will continue till I lose my "marbles" or lose my interest; which I doubt I will. So no, you are not chasing the wrong thing if you enjoy it. And also most probably you don't have a choice if you are not financially free now.
Drizzt
Monday 14th of March 2011
temperament, what i feel is that an average person will earn more by upgrading himself and getting salary increment then rely on investment. what are your thoughts looking back to 40 years of working life?
i do agree we are all trying to get out of the rat race. even though i aim to have 500k by 40 years i feel it is not enough for me to semi retire as well.
Temperament
Sunday 13th of March 2011
hi Drizzt,
Yes, when we are young(me included), we never give a thought that everyone of us is here today and maybe gone tomorrow. We just cannot "feel" it - life is so fragile. We are full of hopes & dreams, we take for granted the world is there for us to explore and to conquer". So that's why it's great to be young. I think there is a very old movie by this title: "It's great to be young". Sorry, if I affected your mood by my prior posting. Best regards.
Drizzt
Sunday 13th of March 2011
Hi Temperament, no you didn't affect my mood. It was awkward when i start posting this. Are you more of a chinese or english film person?
Being in the early 30s, we have already felt the fragile nature of life. I think its getting more prevalent. Can money be the answer to this? I came to a realization that perhaps I am chasing the wrong thing.