China's Social Security fund, among the country's top investors, has wound down its positions in equities, highlighting concerns the nation's markets are overheated, the Financial Times said Friday.
Gao Xiqing, the fund's vice chairman said at banking conference in Beijing that he is worried about the 16-month run up in share prices in China's two bourses which forced the fund to cut stock holdings and reduce risk.
"This market seems to be defying gravity. It's got to come down at some point. We can't risk that, especially given the nature of our fund," the paper quoted Gao as saying. "The market is making me nervous."
...
In the first three months of the year punters in China opened 4.79 million new accounts, a 56-percent increase from the 3.08 million in the whole of 2006, the official Xinhua news agency reported citing government statistics.
Last week the number of new accounts in China's two exchanges in Shanghai and Shenzhen registered a record 252,000 new accounts in one day alone, the China Securities Regulatory Commission said.
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When everyone is rushing to invest in the stock markets, it is about time to time about getting out. I am increasingly getting concerned about the reports that Chinese nationals across all stratas are borrowing heavily to invest in the bouyant stock market.
Seems like my concern is being shared by certain quarters and I have to seriously think about shifting my holdings in Chinese equities somewhere else for the time being. There is no doubt that a MAJOR correction will occur in the China stock market but the question is when. Judging by the frenzy that the common people are in and the fact that China will be hosting the 2008 Olympics soon, it will be difficult to say for sure.
One time is certain though. When the China stock market does correct significantly, there is going to be much civil unrest. Amatuers to the stock market whom had borrowed heavily to speculate are going to lose their life savings. Suicide cases that mirrored the last Asian Financial Crisis will happen once more.
It will do good to spend some time to determine where to temporarily park funds which had been invested into China so as to re-enter the market after the correction.
Fundsupermart vs Dollardex
One of the very frequent questions that are asked when looking for a suitable online unit trust distributor is that whether one should choose Fundsupermart (FSM) or Dollardex. This is a question that I had asked myself before and had no real answer for it. However, my choices of investment platform after a period of holding accounts with both somehow pointed in the direction of Fundsupermart.
Why Fundsupermart? Between the 2, Dollardex charges a lower sales charge which immediately translates into cost savings and hence a high investment amount. When it comes to large amounts, such small differences of 1% still constitute a significant sum. Perhaps I have been a small time investor who does not really feel the pinch of the extra amount but more likely, I am more comfortable with Fundsupermart's website and interfaces.
Fundsupermart has a nice homepage that is pleasing to my eyes. Its services had been good, having online forums, portfolio tracking, analysis and even a free quarterly magazine if your investments cross a stipulated amount. Being well established, I have not seen FSM really advertising its services, believing that it goes round through worth of mouth and its reputation.
Dollardex uses a website that is heavy on words and I find it a strain to go through such a wordy site. It has the usual functionalities but lags FSM in that it has no online forums or free magazines. Dollardex also does make use of advertising such as Google Adwords and it is not uncommon to find its advertisements appearing on the Adsense of this page.
Why Fundsupermart? Between the 2, Dollardex charges a lower sales charge which immediately translates into cost savings and hence a high investment amount. When it comes to large amounts, such small differences of 1% still constitute a significant sum. Perhaps I have been a small time investor who does not really feel the pinch of the extra amount but more likely, I am more comfortable with Fundsupermart's website and interfaces.
Fundsupermart has a nice homepage that is pleasing to my eyes. Its services had been good, having online forums, portfolio tracking, analysis and even a free quarterly magazine if your investments cross a stipulated amount. Being well established, I have not seen FSM really advertising its services, believing that it goes round through worth of mouth and its reputation.
Dollardex uses a website that is heavy on words and I find it a strain to go through such a wordy site. It has the usual functionalities but lags FSM in that it has no online forums or free magazines. Dollardex also does make use of advertising such as Google Adwords and it is not uncommon to find its advertisements appearing on the Adsense of this page.
Which one is a better choice? Personally I prefer using Fundsupermart even though it costs slightly more. However, if I get a windfall and have a large sum to invest, I will definitely go with Dollardex in order to gain the immediate cost savings.
Singaporeans are Grossly Underinsured?
A recent study commissioned by the Life Insurance Association (LIA) has been completed with the conclusion that Singaporeans are grossly underinsured. While the methodology of such studies may stand up to scrutiny, I am always sceptical of studies that had been commissioned by the industry and subsequently arriving at findings that are in favour of the industry.
While the research found that the average Singapore adult may be underinsured by as much as $362,000 and LIA has stated that premiums of less than $4 a day to buy a term plan to cover this shortfall is possible, the reality of it is that at $4 a day for a 40-year male non-smoker, the premium of a 25-year term policy, the monthly premium is going to be around $120. An additional outlay of $120 per month is definitely something that will impact the budgeting of 40-year old male with financial commitments for the family.
If inflation, lifestyle changes and other variables are catered for, the proposed term policy coverage will be much much less in 26 year's time and additional policies will have to be purchased along the way to ensure the coverage keeps pace with inflation, lifestyle changes, etc. Insurance is a long term commitment, a long term financial planning and it is definitely necessary to keep in mind that life expectancy has been on the increase.
For the underinsured, it is perhaps more prudent to consider taking up term policies as an interim approach to address the gap in their coverage while taking the time to evaluate a proper whole life policy that holds some value that can be cashed out to fund retirement needs eventually.
Take time out to evaluate such long term commitments, trust no one but yourself to take care of your family and yourself. Question and make informed decisions.
While the research found that the average Singapore adult may be underinsured by as much as $362,000 and LIA has stated that premiums of less than $4 a day to buy a term plan to cover this shortfall is possible, the reality of it is that at $4 a day for a 40-year male non-smoker, the premium of a 25-year term policy, the monthly premium is going to be around $120. An additional outlay of $120 per month is definitely something that will impact the budgeting of 40-year old male with financial commitments for the family.
If inflation, lifestyle changes and other variables are catered for, the proposed term policy coverage will be much much less in 26 year's time and additional policies will have to be purchased along the way to ensure the coverage keeps pace with inflation, lifestyle changes, etc. Insurance is a long term commitment, a long term financial planning and it is definitely necessary to keep in mind that life expectancy has been on the increase.
For the underinsured, it is perhaps more prudent to consider taking up term policies as an interim approach to address the gap in their coverage while taking the time to evaluate a proper whole life policy that holds some value that can be cashed out to fund retirement needs eventually.
Take time out to evaluate such long term commitments, trust no one but yourself to take care of your family and yourself. Question and make informed decisions.
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