GOH ENG YEOW: BUY PRADA SHARES, NOT PRADA SHOES

This Straits Times piece by Goh Eng Yeow from June 2014 appeared in my feed today for reasons unknown to me.

http://www.straitstimes.com/business/buy-prada-shares-not-prada-shoes

Lovely chart appended.



You are sitting on 50% losses. I think my Prada shoes are still around serving me well.

OBSERVED: INCREASED BAD NEWS FLOW IN SINGAPORE MEDIA

There are a number of ways in which one can assess the health of the economy and observing the flow of business-related news is one such method.

The Singapore media have been pretty factual in its reporting of local business news. Which is to say nothing much's been censored or overtly glossed over. At least that's my assessment. But of course, Business Times' coverage do differ from Straits Times', especially in its nuancing by going for the throats.

In any case, these few weeks have seen financial reporters getting bylines in prominent the first five pages of the Straits Times. And most of the accompanying articles are reports of bad news in the local business realm. Retrenchment, dismal property sales figures, plunging exports. 

And that's not a good thing.

THE MOST OVERLOOKED THREAT TO YOUR GRANDCHILD

What jolted me this morning was Straits Times' coverage of the LTA's raising of Nicoll Drive, a 1km long dual carriageway near the coast of Changi. 80cm was the height to be raised. 

This is meant to mitigate the impending rise of sea levels by the end of this century which is projected to be about 80cm. Tracts of lands would be lost, water catchments compromised by seawater...

You are not likely to face this phenomenon if you are in your 30s. Your children might even evade it. But definitely not your grandchildren. 

With this in mind, it would be prudent to make better choices in life. I wonder who's vested in properties near Changi, Sarimbun, Seletar or Sentosa?

In any case, do read the following for more info:
https://courses.nus.edu.sg/course/geowyc/course/ge3216/students/sea_level_rise/Findings.htm
http://www.econ.yale.edu/~nordhaus/homepage/documents/SLR_Ng_second.pdf
http://www.nytimes.com/2007/08/29/world/asia/29iht-Dikes.2.7301576.html?_r=0

The word 'stave' is kind of strong?

SIBOR KILLS

The financial world does not seem that pleasant beginning last week and early this week. Markets tanked much more. Sentiments dropped. 

Something more worrisome on the home front for people with loans. Especially home loans.

The date to watch is 17 Sep 2015, US time where FOMC meeting with a press conference is slated. 

I think 25bps by Yellen would kill it. 

BORROWERS UPSET OVER HIKE IN MARGIN FOR SIBOR LOANS

The Straits Times' Money section had the following headline boldly emblazoned on page C5 this morning: 'Borrowers upset over hike in margin for Sibor loans'. 

The article goes on to explain that the anger was directed to the larger spreads and subsequent increase in payments to be borne by the borrower.

CASE felt that the increase in spreads should be clearly explained and justified by the banks in question.

Citibank seemed to have caved in slightly at the end of the article by making some concessions. I wonder if they were under any duress then.

But in any case, that's how banks make money from the retail borrower. Scalping you via the spreads. 

Perhaps it is time to refinance or reprice for some of those who took up loans in 2010 and 2011. 

The swinging good times of cheap credit is ending. Yellen reiterated that it would be sometime in 2015.