Inflation Kicking In

A report on the Edge caught my attention today. Inflation seems to be starting to hit after all the money printing. 

Singapore CPI rise beats expectations, economists flag: Update
Monday, 24 January 2011

© 2011 - The Edge Singapore

Despite the measures expected to curb inflation here in sunny, maybe too sunny, Singapore, it's apt to be mindful that some countries don't seem to be curbing inflation anytime soon, primarily U.S.. As precious metals, oil, and other commodities are traded in U.S. dollars, with rising prices due to rising inflation, perhaps investing in these may turn this "trend" into a friend.

The precious metals for example, have had a rather sharp fall last week and seem to be correcting still. However, to anyone thinking it's the end of the metals bull market, that's not true. Not yet at least. The major trend is still up. At a seminar I attended this evening, a professional trader who trades the silver markets as well, gave his opinion that prices were only correcting. Also, in the latest copy of the Edge, Jim Rogers comments that gold is long overdue for a correction. But we're still looking at a likely rise in prices in the coming decade. If we look at the charts for both gold and silver, I totally agree about the correction being long overdue. However, this correction may provide the ideal opportunity to finally get exposed to the precious metal.

Other ways would be to invest in either a precious metal ETF that tracks a basket of metals or to invest in  precious metal-specific ETFs, like copper ETF, platinum ETF, or silver ETFs, or even the mining company ETFs, or the mining company shares directly. A final way to profit is to trade the metal futures itself.

Aside from precious metals, other commodities like rice, cotton, corn and any other agricultural produce will also rise if and when inflation kicks in. As such, one may profit by either looking into ETFs that track a basket of commodities and agricultural products, ETFs that are agricultural-specific, owning shares of agricultural companies or as mentioned above, trading agricultural futures. 

Do note that like all investments, there are risks involved so I would ask you to seek more comprehensive advice from your brokers. Personally, I prefer investing in silver at UOB bank. However, on the downside, I do wish they sold physical silver instead of paper but I'll make do with what they have. It's just a nice feeling holding physical silver coins in your hand.

Cheers and have a great night,

~K

Learning to Trade

Slightly more than a week ago, I decided to try an experiment with myself. As I've never tried trading before, I wondered how I'd fare in the attempt so I decided to test out my ability. 

This led me to scan a couple of stocks and "stock pick" so to speak, based on indicators. Each transaction is noted down in an excel sheet to allow as accurate a record as possible.

As to the names of the stocks I'm too bashful to say at this time. I've "added" another 2 counters over the last two days though. Suffice to say that in a week plus, the portfolio seems to be performing quite well. Well, better than I expected anyway. Nonetheless, It's just a personal test, with nothing to boast about. A personal challenge. 

My aim in this private experiment is:

1) To see how well indicators work and which indicators work for each stock (and for me)

2) To experience what it's like to trade

3) To learn what is important to do for each trade

4) To build up some confidence in the trading area

Like most experiments, there are limitations. First of all, there is no actual money involved so my emotions are held in check without much trouble. I realize this. That said, even if I do do really well, I'm not going to plunge into it and bet the house. I also realize it's a gradual process of being able to handle each trade with a sum of cash that isn't going to cause me to lose sleep over. Secondly, I'm also not going to be able to learn to handle loses, which is more important than handling winnings, so I've read in many articles, blog posts and books. This is why if and when I do decide to trade on a month to month basis, I'll start in small amounts to further build up my confidence and competence.

I will be fine tuning this little experiment along the way the more I learn. So hopefully, in time, I'll be proficient at another way to generate income. 

Wish me luck,

~K

P.S. By the way, any tips on how to start trading efficiently or trade in general would be most appreciated so feel free to leave as many comments as you please. Many thanks in advance. =)

I Thinketh! - What is Rich?

Poor and content is rich, and rich enough.

~ William Shakespeare

Content makes poor men rich; discontent makes rich men poor.

~ Benjamin Franklin

There are people who have money and people who are rich.

~ Coco Chanel

This is rich. Sitting by the poolside, enjoying time to yourself, watching the children play with their blow-up ball splashing in the children's pool. No rush in getting to work, no pressure to meet a deadline. Nice clear sky in cool weather complementing the inviting waters. You just might jump in.

This is rich. Book in hand relaxing at the neighbourhood cafe at the start of the day. People watching. Scurrying citizens on their way to work, all dressed in their Sunday best which has become an every day best instead. Sunday is the time to wear slacks.

This is rich. Enjoying a game of tennis to work up a sweat before heading for a nice simple English breakfast at the nearby restaurant. Laughing, teasing, applauding with every ill-timed return and with every fluke. It's all in good fun. 

This is rich. Having a chat with a total stranger while in the queue in the supermarket. A curiosity question or remark started it all. Your conversation ends when your turn arrives but trade name cards to keep in contact. A year later, you two turn out to be good friends.

This is rich. Taking a plane ride to visit the place of your choice. You spend a week, two, maybe more, experiencing new food, practices, even picking up a new language (vaguely). Exploring cultures and its history. Stepping into the unknown. Perhaps making a friend or two. Your world becomes much larger than you expected.

This is rich. Volunteering to help out with some charity work. Peeking into the lives of total strangers. You see happy faces and troubled ones as well. You feel, you think, you realize life is precious and yet unfair. Perhaps you'll be a better person. Perhaps you'll see a troubled face smile.

This is rich. Your children jump into bed waking you up with their giggles and glee. You chase them out of the room so you can continue with your dream of winning the lottery. You go back to bed and the dream changes to you with the winnings in your arms. Your children being the prize.

Where's the richness in money for money's sake?

Cheers,

~K

3 Tips to Prevent Your Car From Burning Excessive Fuel to Help You Save Money

Car sickness is the feeling you get when the monthly payment is due.

~ Author unknown

Owning a car in Singapore is expensive as it is without adding to the cost unnecessarily. Though I do not have a car of my own and don't plan on getting one any time soon, here are three tips which I found that could help all car owners save on these unnecessary expenses.

Tip 1: Follow the Trucks

In traffic jams, stick with the trucks, which tend to roll along at the same pace. It takes more fuel to get a vehicle moving than it does to keep it moving. 

Tip 2: Check Your Air Filter

Hold your air filter up to the sun. If no light passes through, it's time to change it to a new one. Clogged filters prevents the right amount of air from entering the engine. This results in more petrol being burnt to achieve the same amount of power to propel the vehicle a certain distance.

Tip 3: Get the Right Tyres and Mind the Rims

Big tyres with fancy sports rims may look cool, but create more rolling resistance and weigh more thereby increasing the amount of petrol used.

Happy rolling everyone,

~K