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.