As Has Oft Been Noted

As has oft been mentioned, psychology is the greatest barrier to successful investing as we do things that cause us to under-perform – and by a lot, not a bit just. Another Superstar, Wayne Deans, says “I believe the single biggest weakness with most investors is that their time horizon is way too short.” What Deans and Sprott suggest by long run is years.

They discuss the patience to wait perhaps many years after they have made an investment in a stock they feel is under-valued for the marketplace to capture up as well as for the price to move up. They also point out how they experienced to learn to not sell too soon following the stock price of such a company has finally begun to rise.

  • 5%: 29 years
  • Unlike the 1.5X leveraged UVXY there are no options available on TVIX
  • Undistributed corporate revenue = 22
  • Technology Company’s Potential Acquisition of Internet Company
  • Performance of industrial sector from July 1977 onward

It should of course be considered a moot point that if you need to spend the invested money faster and cannot wait around a couple of years, then the stock market is not the spot to invest. Impatient investors forget that the outstanding investors only act quickly and decisively after doing considerable research to learn what they are buying, developing a concept of trade value thus.

This has implications with it as the business cycle of both economies may be different. A fixed exchange rate wouldn’t normally allow the MAS to adjust the worthiness of the SGD to counter shocks from overseas. Through the Asian financial meltdown, local currencies depreciated against the USD sharply. The SGD depreciated against the USD but by much reduced also. Actually, the SGD appreciated moderately in trade-weighted terms as MAS had the versatility to allow the NEER to go up above its policy band.

In a monograph published by the MAS in 2001 entitled Singapore’s Exchange Rate plan, the central bank or investment company recognizes that to be able to control the currency, it will have to relinquish control over the interest rates of the country. “The decision of exchange rates as the immediate target of monetary policy implies that MAS has abandoned control over domestic interest rates (and money supply). This exchange-rate policy has been proven effective over the full years.

The SGD has valued against its major trading companions currencies. This means that a strong overall economy with high-efficiency development and high savings rate. Actually, a report by MAS shows that the exchange rate is the simplest way to keep inflation low. It had been shown that the exchange rate has a larger leverage impact than rates of interest on the Singapore overall economy. Therefore, the gratitude of the SGD has a larger impact on GDP, exports, and CPI when compared with interest rates.

After discussing on how Singapore’s monetary policy is conducted, we now have a better understanding of how MAS governs its policy. As we know, the main objective of the central bank policy is to maintain price stability and sustainable growth. Lately, many citizens in Singapore have been voicing concerns about more expensive to live especially on transportation and casing cost.

2011 was a hardcore year for the global economy. The debt crisis in Europe and the fear folks not being able to raise its personal debt ceiling triggered a lack of confidence in the marketplaces. Major currency markets indices dropped. Singapore’s purchasing managers’ index (PMI), also declined to 49.2. The PMI can be a sign of the financial health of the production sector. A reading greater than 50 shows an extension while a reading below 50 signifies a contraction.